Putting the numbers in the buy and hold calculator it shows a negative cash flowing property.

As it was money that you received the benefit of.Typically it will be included in the AGI on Line 21 if not insolvent(negative net worth exceeding the cancelled debt), in bankruptcy, or qualify for another exclusion

Any other negative aspects with this idea besides what I mentioned above?

But is the concept the same in that an interest only loan is still calculated on a 12 month basis (unlike "simple" interest calculated on a daily basis)?

I can not tell you how difficult a challenge it might be to the property re-zoned, but based on your numbers, if the property can not be re-zoned you can not legally rent the third unit, which would result in a negative cash flow at the current price.

If you make a mistake on buying a MF and need to sell it to get out of a bad deal or negative cash-flow, the only buyers are going to be investors.

I just spoke with someone from Creative Investment Concepts they said they would guarantee 75K in profits for giving them 10K to start and they would assign a mentor to me.

They accept a % of the risks.So, they need to see if that concept applies to their casualty policy.

I guess I had the wrong concept of how this goes?

That really cuts into your already thin or negative margins.The condo fees are also generally on the high side and you will have to pay that for all 52 weeks even if you only rent for 12 weeks.