Terms are really based on many things, the ability of the buyer/homeowner to pay it back, their credit worthiness, credit score, debt to income ratio, payment history of current debts, and job stability/pay.

I think other things come into play like you're comfort level in buying another one, your ability to manage another, your cash flow situation, your reserves, your other income streams (if you have some) etc.My personal approach is that I look for the best deals when I'm comfortable buying something.

Anyone that would, may subject themselves to a litany of regulations regarding ability to pay, benefit to borrower, etc..

This may be your biggest hurdle in your ability to get a traditional loan.

If you don't, the seller will have the ability to pull out of the offer based on the fact that you said "cash" when your offer really was "not cash", but contingent on a loan.

I am looking to invest some of my profits this year in income generating real estate in South Florida.As I am new, I am limited in fund and borrowing ability.  

Then, if you find you have interest and ability in real estate, go for you license later.Are you in this to be a "wholesaler" or to "make money".  

The biggest item will be that you have some ability to service the debt outside of rental income.  

I've explained time and again that I will not use my degree and my sole passion is in real estate.

My guess is that the seller is a little concerned about the whole thing and/or your (or the end buyer's) ability to close and just wants a little extra assurance for letting you tie up their property.In the end, whatever you agree to, just make sure that you don't pay the money directly to the seller.