A deal that’s “close” but not quite right can still cost you big.

How do they treat people that are close to them?

Hi Jason, It sounds like you are looking to do a cash out refinance on your investment property and quitclaim deed to an LLC at closing? 

Also, don't complain about your offer not being accepted - just submit a better one or walk away - the seller doesn't care about anything other than how long its been on the market and how close to ask you are.

Since the previous owner is getting most of the proceeds does the closing attorney issue him a 1099S and then issue my company one for a much lower amount?

A debt service loan would be a good option if your DTI is high, you want to close in an LLC, you're self-employed or have low income on paper, or you don't have a stable 2-year work history.

As soon as I close on it (next week), I'll list it on Zillow as well.I spoke to a lot of unqualified candidates, but I also spoke to some good ones, and I'd like for them to fill out an application.

Be prepared to come in with additional cash to close due the the appraisal.   

Quote from @Duarte Marques: Hey BP community, I'm new to real estate investing and have been studying (reading books, watching webinars, constructing excel cash flow models,...) close to a year.

It is still a seller's market in many geographic locations, so you can ask potential buyers for an extended closing period and/or with options to extend the closing period.