Just thinking out loud here, and because I have a similar situation I am working with now...To get the sellers attention, and due to their age, I would negotiate less down payment, in exchange for a prepayment penalty (only if legal in your state, and so they know you wont buy, fix and flip in a year) which gives them the income stream they still have, and the tax-deferred benefits for 2-3 years.

I am good at the running numbers side, only now learning how being nice destroyed those numbers.

I prefer buy & hold also, just bought my first house planned as a flip, and somehow doubt that it wont be rented lol.Great job hanging the cabinets, its easier than most think !

Did he destroy the last place he was at?

Realistic,But you should take in travel considerations.You probably wont be able to show the property to tenants yourself and carry out on-site management duties.

This way I wont have to apply for a mortgage and will just have to pay back the HEL overtime hopefully at a low interest rate.

I wont make any thing for 5 years.

I have seen tenants take brand new rehabs like yours and destroy them in months and the perceived gained equity is gone from the damage.

If there are concerns about about the property being destroyed, include "safety" inspections throughout the duration of a lease agreement to stay on top of how the home is being treated.

I wont be able to make it this time, but definitely soon.