Lots of deals are "catch up" or "accrued" which means there is still $334 that the GP would catch you up on or bring current to the 7% pref in later years when there was enough distributable cash flow.I hope that helped but please let me know if you're still having difficulty.

Pretty sure interest accrued on a Heloc can be written off provided the expense was for business.

I have a couple of clarifying questions for you for curiosity sake.1. is the co signer simply brining their "credit worthiness" or are they also bringing funds to help with the down payment?

It's not "concern", it's called "curiosity", or an "observation", that's all.

Out of curiosity, what would you offer the seller to consider financing. 

Just out of curiosity, did you know in advance that they were moving out? 

But isn't a seasoning period also potentially a good thing for a newer investor by forcing them to accrue actuals and experience some reality before moving onto the next project?

Yes Austin that us 100% correct but since it's accruing interest daily , that number could be more. 

Out of curiosity… who would do it if it was permitted? 

We focused on the ADU first, rented it while finishing front house to cover our accruing interest, What was the outcome?