A lot of sellers who offer this kind of deal know full well that the tenant is VERY unlikely to correct their situation and be able to get a loan to close the deal even 2 years later.

We're starting to see a correction in the supply of STR in central FL which will make things easier for homeowners that can stick it out.My advice: Look for opportunities that are as far up-market as you are comfortable with.

and from what i understand, you can self manage these days Correct you can't stay in it period.

Risky but if done correctly as it looks like you did its an "infinite ROI".

You're correct that they would make payments directly to the lender.

And the bad thing from all of these, even if everything is done correctly, the GP is still the one that makes most of the money (well obviously). 

being new, the further away you are from the deals, the greater chance of something happening and you not being able to handle it correctly.

I think it is doable to self manage from afar but you are correct that you are supposed to have a local representative.

So I called my agent immediately and told her I cannot proceed and no deposit was sent.The bank then called me within hours to correct themselves.

@Aubrey FordThis is only numbers which if the numbers are correct then it’s not bad but if the numbers are off it could be an awful dealWe have no clue if the arv is correct or Reno correct etc but if you can make $20k+ that’s great