The Seller clearly doesn't need the money immediately or he would have evicted these tenants and replaced them with renters that actually pay rent.I would offer to purchase the building at the listed sales price.

Other than that, with only one meter, the owner will have to pay for both houses and build that into the rent. 

@Harold Albertson10% and points for six months is not badI would absolutely put a deed of trust / mortgage and secure the property with the loan.

The garage is a prime candidate for its own ADU, but for now, I just wanted to get some people paying for the mortgage then decide next steps.

Everyone is at difference levels in their flipping careers but I explained that in these nicer areas you're going to have a slightly smaller margin but you are paying up for the security of that return.

There have also been times when I needed to put and pay for a hotel for such things as tenting a building, do major plumbing or big repairs etc….

Fastforward to today and I have enough equity to pay the lien off.

The response I received from the PM was that it's due to recent legislation where she's seen "professional" tenants take advantage of recent tenant protection laws that allow them to stay in the property without having to pay rent for the term of the lease. 

I continued my program of over paying the principal amount of my monthly PITI to bring the loan principal amount down quicker as well.

Or if the seller is really trusting have them front the money for you to bring to closing and then record the 2nd mortgage right after?