I am looking to expand my portfolio whether in long-term rentals, STRs, flips, etc with a partner in order to better utilize funding, etc.

While seller financing is less common with flips, there is no real reason it can't be used, as long as it satisfy your needs and the sellers.  

Also how did your tax return differ in terms of what you paid or got back from the IRS?

@Brendan M Hornung what's the long term goal of this person?

Considering their LTV is at market or debatably below market (depending on the asset), if the interest rate or loan terms aren't advantageous, I'd also suggest getting quotes from other lenders.Since you are located in upstate NY, I'd look for local banks.

However the previous owner will be in the military for a long time, he's on the note, and so the bank can't foreclose.

I understand that the Section 121 Exclusion for Primary Residence allows you to sell your Primary residence and not have to pay ANY capital gains taxes on the gains/proceeds - as long as you use those funds to purchase your next Primary residence.What I cannot seem to find the answer to is - what is the maximum timeline allowed from Sale of the first Primary to Purchase of the replacement Primary residence? 

Any insight would be helpful Hi Carlos, In terms of cash flow, Jackson can't be beat.

Being that I am do not in incorporated Palm Springs, I do not fall under the city's short term rental regulations.

Our goal is to convert it back to a 3-4 unit property for long-term and short-term rentals.As I currently reside in Washington DC, I'm unfamiliar with the local permit processes and requirements.