Would love to meet like minded folks in SWFL.

To give you something as a reference based on your budget (30-40% down with $1.8M), the general cap rates you will see in the Bay Area are roughly 3-5% https://www.loopnet.com/Listing/1047-Rich-Ave-Mountain-View-...https://www.loopnet.com/Listing/1180-Saranap-Ave-Walnut-Cree...You will find higher cap rates and more 20+ units buildings in SF, Oakland, and Richmond, but keep in mind of their stringent tenant laws. 

The current owner is letting me take over the property as a tenant as long as I pay the water bill and the mortgage payment on it and whenever I decide I can purchase property for the balance of the mortgage  they are in no hurry for me to purchase the home as long as the mortgage is paid. 

Will they continue paying market rent for a mismanaged property. 

Let's say you're paying 3 points and 12% to a real shark. 

Nathan keep in mind not everyone is a landlord most litigation in RE is between partners and investors suing GPs etc etc. 

The owner should look at it more like a DSCR, and should be pricing the property and offering terms such that the income from the property is adequate to pay back the loan.

Many of us pay hundreds a year their partner revenue is only increasing and we can't get an APP?  

A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

I’ve seen people buy land thinking water was covered only to find out they had to pay 6 figures to get water re-routes or upgrade pump stations.