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At the three year point, the entire remaining balance is due.

This is probably because the ROI on her 3 months of advertising is more valuable to her than the 30 dollars more a month.It all depends on what you can do with 1400 dollars more in your pocket today versus 30 dollars less a month in income/expense from a cash flow perspective.From a balance sheet perspective the higher rate of 4.75% makes your equity pay down of your 30 year loan slower (less amortization).What are you thoughts?

Assuming none of these are worth a good deal more than the loan balances, to an owner occupant buyer, none of them look like a deal.

The seller's broker countered with $10k down with paying off the rest of the balance ($15k)  at the end of 1 year.

But profits are also subject to Self Employment taxes, so there's plusses and minuses to both methods.The issue with taxes is that it is both an art and a science to maximize tax savings and balance other needs and it's really important to sit with a knowledgeable CPA and talk about your specific situation (not your friend's, not somebody else on BP, not your mentor) and have them help you design a tax plan built for you.  

That said, and as always, you really have to keep an eye on your projects or have someone you trust do it for you (and have other checks and balances in place i.e. legal recourse, third parties, etc).

. :)This answer makes no sense to me.A "good flipper" has to pay the highest tax bracket every year.A "good flipper" cannot sustain the market cycles the same way a more balanced business can.If the goal is passive income to retire, why not start with that goal in mind in year 1-2 and benefit from inflation, fixed interest rate debt, tax benefits and what you really like versus waiting 20 or 30 years for that.  

Upon receipt of the buyer’s payment the seller paid the monthly principal, interest, taxes and insurance (PITI) payments to the lender servicing his FHA loan, and pocketed the balance.

The soon to be wife is very adament that she doesn't want to live in a crummy place or area, so I have to find a balance between a good investment and a property that is in reasonably good condition.