My plan was to gradually raise rents to market rate over a two-year period, which would generate a cash flow of $200 in two years with a 7 percent interest rate.The seller is firm on the purchase price and has cash offers as backups if our agreement falls through, but we are currently under contract.Pls let me any additional info needed, as this is my first post. 

Can you fix the place and still service the debt?

It’s a reasonable arrangement as the LPs put up most of the cash and the GPs do all the work in addition to signing on the loan.

Additionally, as with every deal, it is important to run your numbers and make sure your have your goals iin order as well as a safe way to unload the property need be.I am located in Milwaukee and would be more than happy to talk further.

If you are referring to ocean front structures, there are additional CAMA rules in place that go above and beyond the flood rules for renovating a structure located within or forward of the oceanfront setback.

There are programs that will also auto-flip to owner's account to avoid shutoff and these resulting situations.In addition to @Nathan Gesner great advice, you should check with an eviction attorney about how to legally keep the tenant from returning to occupy the property or pursuing eviction as necessary.

Is the anonymity and the additional asset protection worth the hassle?

One benefit to buying now would be that we'd rent out additional bedroom to current roommate - so we wouldn't be paying more in rent than we are now.

This property is debt free.

Additionally, if the Sarasota home has been their primary residence, all gains up to $500k will be tax-exempt, so there will be no tax bill to pay (consult your/their accountant first to confirm).