I am curious if I can describe my plan going forward and get some feedback. 

So  in vacation rental markets like the Smokies it typically gets rolled into the purchase price and, as @Thomas Dulin described, documented on a separate bill of sale for a nominal amount.  

It kinda helped but just really describes each entity but now how to meat and potatoes.2.  

Ok, Greg, I'm going to ask you to get a better profile up here describing you and your goals in real estate as well as identifying your general location if you continue to ask questions like these.

Is it because many smart investors most likely take the steps you described in forming a good relationship with the current lender? 

@Marvin Meng Could you just do what’s described in this video?

Seller described them as settlement cracks in the disclosure form but it looks like a little bit more than that.

From what you describe you may be able to demonstrate that intent satisfactorily if ever asked. 

That is a strategy that David Green describes in his Long Distance Investing book.

@Chris Morris - best way to get what you're describing is to take on a value add strategy - of which there are many...