These are all great examples of, like you said, creating cash flow. 

However, if I were to proceed with this, I would likely need to adjust the rent accordingly.I’m looking for advice from the community on how best to approach this situation.

So, if 'weak" on your lease, don't feel bad about buying a template from one better refined, or using a TP service from a provider who has one to level like mine and then, well, you'll have that in hand for all actions going forward, right. 

I like connecting with lenders local to the areas because they typically have a larger network in the market and sometimes they're able to process the deal faster as well. 

He would need to rely on one of the other tests, most likely #4 - significant participation, i.e. would need other investments outside of this partnership, and most likely other STRs. 

Hello, I would like to buy my first home as a primary residence in Florida.

Short answer is as little as possible.The long answer is it depends on the deal.Typically you end up in a subject 2 situation when the current owner has little or no equity in the property, the current advantage of subject 2 properties is that most mortgages are below current market rates.Keep in mind when acquiring a property subject 2, in most instances you are not notifying the current lender of the change in ownership, and most if not all mortgages have a due on sale clause, which is the lender's decision if they want to enforce it or not.I personally like the idea its a great way to get investment properties with low rate loans, that with most likely appreciate in the coming years.

Aside from the responses above regarding the bank likely requiring the 20% funds to be yours, good luck finding any private lender willing to take a second position note on a 100% LTV for any %, let alone a tiny 3%.Now, banks do, at times, allow seller carried back seconds, but unlikely with no skin in the game from the borrower.

It sounds like you have a cushion and some time to do some more digging and hopefully get an idea on what kind of tenants they are.

We got 4 quotes and went with the contractor whose quote came in the middle but we liked the most.