@John LasherI don't know your exact situation. 

I've also used traditional loans through regional banks and a few SBA loans. 

I am in a similar situation.

Small talk, showing empathy, and expressing genuine interest in their situation can go a long way in establishing trust and goodwill.Be Willing to Walk AwayOne of the most powerful negotiating tools is the ability to walk away.

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

You will make more from loan pay down, yes you SHOULD have some appreciation.

I can only imagine that they got a bunch of big time investors and business loans to grow this out.

We were able to get into it with a 5% down primary residence loan.

Are you using the 10% down second home occupancy loan?

If they have a good interest rate it might be worth looking to see if you could assume their loan to take advantage of the lower rate.