@Logan Jorns Would highly suggest getting in touch with a securities attorney (as also pointed out by @Chris Seveney).

For example, you buy the place and the tenant could claim the Seller allowed them to paint the walls black or that their security deposit was twice what the Seller claimed.

Usually in a regular contract the seller covers a basic title policy for the buyer but special endorsements added to the policy are the expense of the buyer.Anything is pretty much negotiable.

Explaining the process and security they have if things go south is whats gonna get them to sign.

However, there might be some tax benefit in your situation to treat this as a partnership (LLC tax as a partnership ).For instance, this treatment could reduce a married couple's SE tax bill when one spouse has wage income above the Social Security tax ceiling ($128,700 for 2018).

@Lyle CooperUnless this small building is your home or the mortgage on this building is secured by your home, you are not allowed to deduct a point in a year you pay it. 

The returns, on the whole, are better in Cincinnati than Columbus but Columbus has the security of population and job growth.

When you can find 'good deals' on a regular basis, you are set.Going to some REIA meetings will get you in the mood to invest, but get some education.

I am thinking the easiest way would be promissory note, but I was curious if there was any way that I could secure their respective liens on the property.

Originally posted by @Michael Lewis:Your math is wrong the 60k profit a year on a 500k investment is 12% But you don't see that equity until you sell the place, so you would also have to include the opportunity cost of tying up $500k in cash.The only way you could see that down payment back in cash is to take part of it out as a loan secured by the property.