It can hurt you from buying more properties if you owe more than its worth thus even if it cashflows the banks will treat this as a liability versus adding to your networth. 

Because it is the commercial space, it is a little harder to find track records (versus residential where you can go to their Zillow profile and see past sales).I would recommend networking like crazy. 

@Julie FlynnAs everyone mentioned, a commercial or private loan would be your best bet.

Now that you have some experience, I bet you could find a private lender to give you better terms on your next deal.

Or consider an attorney if you have concerns.But this seller is only looking out for their own interests, you can bet on that.

For you to disregard anyone who dares to disagree with your plan is at best foolish.....Having said that, I think it's a cool idea, but I'd bet it will cost far more than you have budgeted.

If that is the case, the problem is that sooner, rather than later, they are not going to be working and you've shown a willingness to file claims.Your best bet is to find a non-admitted / surplus lines carrier that will accept this type of risk.

Houston Real Estate Highlights in October:-Single-family home sales fell for the second time in 2021, down 5.2 percent with 8,703 units sold versus 9,183 in October 2020;-The Days on Market (DOM) figure for single-family homes rolled back from 48 to 32;-Total property sales fell 3.1 percent with 10,756 units sold;-Total dollar volume rose 9.9 percent to $3.8 billion;-The single-family average price increased 13.1 percent to $377,631; -The single-family median price rose 14.7 percent to $305,000; -Single-family homes months of inventory registered a 1.8-months supply, down from 2.3 months year-over-year and below the national inventory of 2.4 months;-On a year-to-date basis, single-family homes sales are running 12.9 percent ahead of 2020’s record pace and 21.6 percent ahead of 2019.

But keep it simple.Create an LLC so that you have a different entity that manages the properties versus the same LLC that owns them.

Let’s say you can cut the 27.5 year depreciation you’ll use if you do nothing versus 7 years for anything with a “short” life.