I was very ignorant when it came to financing properties.  

Excuse my ignorance here, but isn't that what I pay you for?

I am thinking about going in at 50% offer and hoping that they will accept but if they cant I hope they counter and just don't ignore my offer completely.Further, the area this is in is literally a block away from a very nice neighborhood that showed some good signs ( kids playing outside, nicely kept yards, no abandoned properties, no police activity and respectable rents), but this unit kind of sits in a pocket of "potential" to put it nicely. 

Send this to the attorney and ask why he believes it's a commercial deal and how the zoning will be changed to reflect that, or otherwise use the full length form as you've requested per state law.His LLC comment is completely ignorant and should be ignored.If you end up proceeding without a full Seller's disclosure then if you find something that should have been disclosed via disclosure that was not you can sue the Seller and get reimbursed via the legal process if they were required to provide it.

Emmanuel, I would if that's an absolutely necessary step (that statement shows my ignorance with financing as I previously mentioned). 

If you think training is costly, consider how much more ignorance will cost you.You can find a lot of people that promote themselves on this site.

To merge a personal asset (the home) into an LLC (the business) is contrary to the concept and you might as well ignore the LLC and hold everything personally - - you have no asset protection.Also noted is the zoning issue of running a business and a group housing facility in a residential zone - - check with the city to determine, the existing zone and if a variance might be granted - - lean on the veterans angle as service to the community/country.

Take answers from out of county and out of state with a grain of salt.I can tell you for example that anyone offering advice based exclusively on property taxes in my home state of California should be completely ignored unless this property is also in CA.

I am not ignorant  to CAP rates nor I am interested in misleading novices in this business.

He certainly doesn't have to spend much time managing the property most months.On the other hand, given the turmoil of moving twice in one year -- once into a rental and again into a house we bought, learning our way around a new city, and not knowing who to call when there's a problem because usually I would have either fixed it myself or ignored the problem when I lived there, I'm not sure I would self-manage that property if I did have the chance to do it over again.