Quote from @Nicholas Petrozzi: Nobody can answer that without knowing your finances, your skills, your drive for success, and 82 other factors that can't be discerned from your post.I can tell you that you shouldn't set your bar too high or make things too complicated.

That could pose a lot of issues with zoning and permitting making things more complicated. 

To address this, we agreed that I would work in the business for six months to verify the financials, which so far align with his POS system.My main issue is that at 23, I don't have strong financials to get a conventional loan at 75% LTV with a ~7% rate, and the seller's lack of financials complicates bank approval.

I think part of it is these cases are complicated.. so hard and time consuming to prosecute.the one I have first hand knowledge of here in Oregon.. its the IRS that ended up taking it on.. these guys take this money but don't pay tax on it.. that's tax evasion money laundry and wire fraud..

Once you clear the 2-yr mark of living there yourselves, you can likely use the full $500k.Disclaimer: I said likely, because there could be a mountain of complications, as well as some different opinions from my peers.

It's not that complicated, but it's not fast or easy.

Lawyers may have to be involved, thus delaying and complicating the process, however, as long as nothing was done with intent of causing whatever caused the claim, they'll cover it.

There's no need to go looking for something complicated. 

Really, so the most complicated, intricate is the "best place" for those who know the LEAST...... 

In a contract for deed, often done with seller finance deals, the answer is a little complicated.