I don't want to get in the habit of depending upon future incomes to prepay bills if it means we're now "dependent" upon the property to perform. 2-Are there 3rd party vendor that offers nationwide property tax payment plan solutions for commercial properties? 

The rent that you can charge per unit will depend on the location, beds/baths, and amenities but that being said $1500-$2000 for one unit is a realistic rent target for a number of neighborhoods on the NW side.

However, you can make certain properties work depending on your strategy, implementing creative financing strategies (seller financing if they have 100% equity usually), to keep your debt service lower.

@Jordan Fair- thanks - this depends on several variables ...is it primary residence ? 

Post construction appraisals are around $340k-$370k depending on location.

(Depending on what they're selling, probably not six figure nice, but newer and well cared for). 

The timeframe would depend on your sales and communication skills.

The amount of this deposit is going to depend on the auction itself.

It sounds like you have plenty of money and a good credit score enabling you to purchase a turnkey rental property with tenant in place, and cashflowing, depending on where you are shopping.  

The gain is recognized proportionately over the life of the note.If he will recognize more tax or not is going to be dependent on his own fluctuating income tax brackets over the he is collecting on the note and recognizing gain.