Doing so places all involved parties at risk, and I fear will attract the attention of legislators thanks to those who do things carelessly.Instead, stay in the deal by closing on the purchase and selling with a wrap.

The 80/20 split you're proposing, shifting to 70/30 and 60/40 as IRR hurdles of 14% and 15.5% are met, aligns well with common practices.

DM me your proposals. 

The m2m tenant presumably has lived there for MORE than 12 months, so based on AB1482 "no-fault eviction" legislation, you cannot simply give notice to vacate.

This article talks about the area being saturated with STR'S and city council looking to double the lodging tax.https://pagevalleynews.com/lodging-owners-speak-out-against-proposed-doubling-of-lodging-tax/

We have been proposed a deal where we would renovate the sellers duplex from a 2 to a 4 and while doing that, our sweat equity would earn our down payment To purchase the property through them.

You can even finance the 6 months of pitia mortgage payments into your proposed loan that way you’re not making payments for two residences at the same Time

He proposed 2% which would be $8,000, does this seem fair or standard?

@John Underwood  I read what I believe to be the new SC legislation. 

Divide the $100k cash out over 15 year proposed mortgage = $6666/year.