The issue you will face is how to make it cashflow.

I think the biggest issue is the fact that the agent didn't disclose this from the beginning and it seems like he was trying to keep it a secret.

My guess is there are some STR owners or managers genuinely unaware their current pricing exceeds the price gouging thresholds until it is brought to their attention.]Will PriceLabs and other dynamic pricing tools- respond quickly and appropriately to these issues?

If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

We have anything from multifamily & single-family properties that are already tenant occupied to permitted lots, so it works perfectly to consistently have something that can close in 45 days or less.

There are several other issues with this; but just know at it's core it's an attempt at tax avoidance-not tax reduction.

We typically have a specific criteria of contingencies we are putting into place within the purchase and sales agreement to help protect our investor clients from many of the issues that arise when inherenting tenants.

The main issue I have is contemplating the baloon payment at the end of the 2nd year and refinancing the remainder with a bank...how can I compute that into calculating the IRR?

Covering the mortgage isn’t an issue, but I’m considering factors like: Multi-Family: House hacking would help offset costs right away, but I’d likely need to put money into renovations upfront.Single-Family: Easier move-in with no immediate renovations needed, plus potentially lower tenant turnover once I rent it out For those who have been in a similar situation, what did you choose and why?

Meanwhile, the sellers who are most likely to offer creative financing are normally the owners of  real estate that have issues.....condition.....low barrier/over supply market......or perhaps pricing issue, and one of these factors is why its not marketable in a arms length transaction and why creative financing would be accepted.