In this case, is it legal for me to act in the capacity of a finder and charge a finder's fee considering he negotiates the deal himself?  

By forming an LLC it is slightly easier to account for expenses to offset against your income.

Was hardest part of this business for me in the beginning. 

After each step was crossed they would “suggest” you be a part of the next step which would basically require some form of cash down payment.

Ideally we would like to form an LLC and finance under the LLC.  

If she is right and I shouldn't host my own rental application forms, does anyone recommend a company that provides these forms and hosts the stored information themselves and has some sort of wiget that I can embed in my website?

It would be a turn off for me to get solicited that way, unless I knew who you were first. 

I'm not sure how to tackle this.Short story is - I want to try my hand at owning vacation properties that are oversea for me - I do not know where to start.Basically I am asking for information resources. 

Needed help to find a rental agreement form here in Seattle.

This scenario comes down to numbers and what makes sense but for me I think putting less down to buy works well for keeping cash in your pocket for future investments/ rehab or maintenance.