This shop appears to have longevity, so that’s a good sign at least.The Pizza Place has been in business since 2005.Asking Price is $79KAnnual Revenue is $475KCash flow is $75K Net profit not disclosed.My first question with buying a business such as this is, do you normally have to pay the full $79K up front or do they take a down payment like any other real estate deal?

After many hundreds of doors we have had only 1 tenant push back on taking care of the lawn, but that is normal locally. 

I'm excited to hear about the numbers on this one compared to renting by room to normal tenants. 

Is it normal to ask for these in due diligence and if so, since he don't have them, should I have him have them complete some applications during due diligence period?

I spoke with my mortgage guy at Lake Pacor, who we normally go through, and he said he didn’t know of anyone. 

If you want conventional, you should be able to get something in the 3's with normal closing costs. 

There is normally a tenants in common agreement which indicates how the income / expenses will be split.Through an entity - An entity such as an LLC, partnership can directly own the property.

I feel like this was a big gamble for the OP because if other STR landlords are irresponsible, the association could stop STRs- but he should be fine if he has to transition to long term and rent a room at the hotel when he’s in town. 

They normally check taxes, liens, and a whole host of other issues.   

Also, the company that provided the best price/coverage for it as a homeowners may not be the best for a Dwelling/Fire policy (normal policy for rented 1-4 family house).