He get's principal and simple interest payments over a number of years.I'll manage the deal and the property.Looking to create a proforma for this that would fit a typical rental analysis but insert the detail of having private money cover the DP.

There is no additional "risk" on the note like a demand clause etc, but you have  extra expense in upfront one time costs and the pre-payment penalty that most programs are sold with if rates do drop as expected in the future.  

How was the switch to commercial?

Trying to figure out if the juice is worth the squeeze. 

I have been looking at properties and it seemed like the seller s  based their price on zero percent cash flow for the buyer.

That is the responsibility of the tenant, not you. 

The absolute best way to avoid taxes is not earn income.  

@Roy Kinzer Rent control in NJ can be a tough pill to swallow and unfortunately has caused many of my deals to fall apart quickly once buyers/future landlords realize how strict the controls can be.

The higher the risk, the higher the cap rate, the lower the price.My advice to anyone who is getting started: buy something safe.

In the future, either get your Real Estate License so you have access to the MLS, or make friends with a realtor so they can get you comps to get an ARV.