Additionally, if the deal falls through am I to be left with the legal fees?

This addition is designed as a completely separate unit however it can easily flow into the existing house, creating a 3/2 with minimal work if needed.

I would bet you could find a pretty solid one online.

I agree the neighborhood is a bit rough, but my bet is that it will be lot better few years from now..Rodent control seems an ongoing issue..

If you plan on buying additional homes with this person, I would just let her enjoy this easy sale because the next one might be much more difficult. 

In addition to above, the lack of core investment opportunities, and inadequate inventory for proper diversification are critical issues that the industry needs to solve.At the same time, I don't think all of them are going to end up in a ball of flames.

I simply add something like the following to Block 20 ("Additional Terms"):"Buyer reserves the right to finance a portion of the purchase price, but is not requesting a financing contingency".Obviously, if your financing falls through in this scenario, you are obligated to cough up the cash to close, or lose your deposit.

During this time we can decide if we like the area, while searching for other areas (perhaps less touristy) and if so, purchase an additional home in a traditional residential area and use the "vacation" home as a rental?

I bet you are proud of your achievement.Several pieces of info you have not shared with the community.

I'd say that a face to face meeting with a local attorney, ideally one who also invests would be your best bet..