So, I would be cautious of this strategy/avoid it all together.

Oh, and I did write an article on how to avoid all of this that you can find HERE.

If this isn't a great price, I might consider avoiding this seller...

So, I'd avoid it if you can. 

A couple local realtors said they see a slow down of offersOUR IDEAS IF WE SELL:Put down payment on smaller home - have tons of cash left to use for down payments on other cash flowing SFH or Multifamily properties (1031 or our own opportunity fund) have down payments for a couple of small commerical warehouses (1031) Rent for a year and see what the market does - keep money in our own opportunity fund or trust to avoid Cap gainsBuy another small house now - and airbnb our waterfront home - income should pay for both houses monthly debt service and then some... 

Put a full 20% down to avoid PMI or keep my cash but pay a higher monthly mortgage?

@Marc Rice Thanks for the info. and good point on avoiding the contract.

I read about this in a blog article recently: https://www.biggerpockets.com/...Bonus Tip — How To Cheaply Transfer Property To an LLC"...you can easily avoid triggering a due on sale clause by using a land trust instead of a direct transfer.

How do I avoid getting sucked into working for free for some mentor that will just use and abuse my time?

A lot of lenders are pricing high to avoid taking on too many investments right now.