You are getting ready to stir the pot, imho.

It boasts 2 living rooms, 3 bedrooms, 2 full bathrooms, eat in kitchen with french doors that lead out to a back porch with the most amazing built in benches where you can relax and enjoy the good life!

For someone with 0 exp and no capital this is like finding a pot of gold. 

But it a service thats benefits you so lets sweep it under the rug...looks like "The pot calling the kettle black" to me...I formed an LLC and i explained exactly what it is i do and what kind of company it is.

The Capital budget is a separate pot of funds.

Jeff:We acquired a duplex early on which would stand as the example to disprove your hypothesis ;-)That said, it serves its purpose as a "test bench" of sorts to teach myself how to make older (Victorian in this instance) buildings somewhat energy efficient.George:Congratulations, this one appears to have a few quirks to make it interesting.

just the bigger pot holes

The pot was continuously split 4 ways, and we decided that wasn't fair if one or two guys were the rain makers finding the deals.  

you could sweeten the pot by going with his asking price as someone who wants to purchase the deal on seller financing isn't ask concerned with the purchase price as much as the terms.The other thing you could do is go for a higher interest rate, however it would be good to understand what his original intention was with the property?  

First, putting a lot of work into it isn't any more of a reason to keep putting your money into it (negative CF) than adding to a "pot" in poker with a bad hand.