If you spend some time talking with them, there may be an opportunity to get them down to 15%.

Assuming inflation takes rents up in the area, that should only be an issue for a few years.

Will refinancing be an issue (apprasial as a two family instead of three family)?

Pete, FL - I'd be happy to meet for lunch or coffee if any seasoned investors want to share some knowledge with a newbee!

I just made sure it would be an attractive enough offer to this guy based on what I learned about him and his situation.

This could be an attorney, individual, or other business entity that can receive legal correspondence and other state documents.

I only was suggesting that an LLC would be an option. 

There also may be an issue of debt-to-income ratio if I buy another house.Hope this makes sense. 

Getting started so far has been intimidating, and it would sure help me alot to be guided in the right direction by experienced folks.I would love meet up for one of these outdoor events in the next couple months, or just get a cup of coffee will work. :)My specific interests are Short Term Rentals and House Hacking.I look forward to seeing what is out there for me!

I'm assuming the current owner has no debt (100% equity), which would man that 7% would be an enormous profit.Also, if this is 100% equity, this isn't a loan you are getting, which means the seller retains title until the entire amount is paid off.This sounds like the seller has you by your lower tonsils.