I've tried looking locally, and I don't favor the risk/reward in Sarasota, FL. 

I typically see: 1-3% acquisition fee1-3% asset management fee0-1% disposition feeWaterfall is hit or miss, but after investors get 15% IRR, often the GP gets a more favorable split. 70/30 to 80/20 split is typical$50k-$100k minimum is common

In addition the favorable business climate continues to attract Employers fleeing higher taxed states.Obstacles 1.

I probably annoyed the guy which is fine - if he's catching attitude over a simple request then he's not doing his sellers any favors.

NJ tenant law highly favors the tenant.

The family member who agreed to lend me the rehab money and purchase money lives across the country and will be only be contributing financially.Is there a better agreement that will work better in my favor, considering I have done and will continue to do all the sweat equity?

In many cases the city is not in favor of converting 2 families into 3 or 4 unit buildings, because that would mean to increase parking and sewer by 50% to 100%.To make it a legal 3rd unit you will need to have two forms of egress (stairs), so pleople are not trapped up there.

Do yourself a favor and call the professionals.

The biggest thing you can have working in your favor is to go to a lender with an actual deal in hand and be able to explain why it's an actual deal rather than something you're just buying at market price and potentially overpaying for (as many people are these days).

Could she be on the mortgage and then it would be considered owner-occupied for a more favorable rate?