He intends to turn it into a short term rental. 

My name is Rami, and I’m a short-term investor doing business in Texas, with a strong focus on the Dallas market.

If I understand correctly; the seller would receive 80% ($40,000) directly from the mortgagee at closing and would enter into a personal agreement with me for the 20% down payment ($10,000) in which he would be reimbursed separately from my mortgage payments at a separately agreed upon rate and term?

They also have a home vacancy tax in a lot of areas which applies to short term rentals. 

We own a real estate, mortgage, and property management company solely focused on Short Term Rental Investments How did you find this deal and how did you negotiate it?

We specialize in short-term rental investments through our integrated real estate, mortgage, and property management services, delivering expertise at every stage of the process.

Long-term, look into refinancing once property values increase to lower your interest rate or pull equity for your next investment.Good luck!

How to Track Regulatory ChangesStaying up-to-date might seem daunting, but the right strategies and resources make it manageable.Key Resources:Local Government Websites: These often publish updates to zoning, rental, and housing codes.Real Estate Associations: Organizations like the National Association of Realtors (NAR) or local landlord associations offer regular updates and seminars.Newsletters and Blogs: Subscribe to reputable legal or real estate blogs for insights into upcoming changes.Professional Advisors: Build relationships with real estate attorneys and property management professionals who can provide guidance tailored to your market.Pro Tip: Set up Google Alerts for terms like “rental law changes” or “landlord regulations” in your area to receive real-time updates.3.

When a long term tenant moves out, you can charge market rate rent. 

Basically, if you did this over the term of your mortgage, you would end up owning the property outright at a simnifically lower percentage.