In addition to what Wayne said the seller will have to pay imputed interest gain and will make almost or maybe ZERO cash flow if he takes this to an accountant .. or anyone who knows anything about these seller carry backs your going to have push back I suspect unless your paying WAY over market.I have sold a lot of my OREO over the years with ZERO % owner carry but always set them up short term.. 30 months 40 months that sort of thing ..

I have reached out to an attorney, but I was hoping to get some additional wisdom from people who may have been through this.

Such as Base rent is $500.00 for 2 adults and 2 children and $50.00 a month for each additional occupant.

It’s a good time to inspect the service entry cables too, if the panel is that old, they may need to be replaced too for an additional $500-1000.

We require forfeit of deposit, 30 day notice and buy out fee of 1 additional month of rent. 

If it doesn't, add it.

The last few years I've been seeing great results with simply index investing (which I'm still continuing in multiple IRA accounts) so I guess part of the motivation for real estate was to diversify a little bit  (in addition to the REIT holding I have). 

Setting up multiple LLCs can provide you with more protection, simply by adding additional layers that make it harder for someone to get to you, if they sue you.However, it is probably totally unnecessary and, in my opinion, borderline unethical, for an attorney to try and sell you that level of protection when all you are doing is buying a rental property.

Did you get any additional security to guarantee repayment? 

In addition if your going to flip houses you need a developers license..