I would have to assume that if they've had it that long, they could absolutely have some really nice cash flow going.

Inherently the steps are the same as if you were purchasing with financing save potentially less closing costs and ability to close sooner (if needed).The terms of your offer (ie -contingencies, closing cost splits etc) will determine what is different. 

I'm having a hard time believing that as I've never seen one installed like this. 

@Brandon TylerThat’s an exciting step—getting your real estate license will open up so many opportunities to learn and grow!

If it is last rental rate charged, then you may have to get creative to accomplish what you want to while still working within the law.Here's an idea to explore.....If it is a 10% increase over the last rental rate you charged, consider using a step pricing lease if allowed by your state. 

Let me know if you have questions, I really went through and through the process on this deal. 

@Henry Clark in step 1, what is the numerator of the ratio?

In addition, while the umbrella did not end up having to pay out, having it meant I did not stress about it at all.  

Buy: Finding the Right PropertyThe first step in the BRRRR method is to purchase a property.

You have already laid out both scenarios.