By understanding the seller’s timeline and needs, we were able to negotiate a fair price of $58,500 that worked for both parties, setting the stage for a profitable fix-and-flip.

We are still in the beginning stage so I have lots of questions and am here seeking the advice of seasoned investors. 

Just try to buy above Russian river flood stages which I think is around 40 to 44 feet..

Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started.

I have done this a few times myself and have a few basic recommendations:1) Make sure the seller owns the property free and clear and that it's very clear to both parties whether the arrangement involves a deed of trust or contract for deed2) If a balloon payment is involved, be sure to assess your ability to refinance and make that balloon payment in the future- optional extensions can help manage this risk3) Understand the tax implications if the interest rate is notably above or below market rates4) Get title insurance! 

They have one of the more unfriendly fee and waterfall arrangements for LPs and both Frank/Joe have made alot of money over the years during the ZIRP period. 

At the early stages, the more control you have over your real estate, the better returns thus I recommend investing locally to make your dollar go that much farther and gain a good familarity with real estate before exploring out of state investing.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

I am unsure what case law there may be regarding STRs with regards to "public accommodations" versus a typical rental arrangement.

The legal structures they set up for me were confusing until they sent me a block diagram showing how everything works at which point it became very clear.Only thing I wish they had was a "users manual" that explains what to do at each stage of the process; that would have been simpler than all the emails I sent which they happily answered.Overall it was a very positive experience and the peace of mind it brings is well worth the money.