The other issue is that it seems to be a pretty nice house, which leads to the issue of finding good tenants - often tenants who can afford that high of a rent for a year could also just a get a house and just pay the mortgage (not all people do this, but it does limit the demand for the commodity you are supplying.)I've seen people run distance rentals successfully and unsuccessfully.

If your loan has a bullet maturity (i.e. a balloon payment), you will have to refinance or come up with a significant amount of cash to payoff the maturing loan.

My question for commercial property agents is what does it mean when a agent says "seller is giving a 5 year note with a balloon letting the buyer refinance in year 5"? 

Maybe if supply and demand ratios changed and they were desperate.

The owner was kind enough to supply me with his nephew's contact information, but I have not had any success in contacting him. 

You can pay a smaller down with interest only and a balloon allowing a sale, a reposition or a refi in a specific timeframe or maybe even no down with a larger seller carry and balloon.

He will supply the down payment and I will oversee the business end of the deal.

I have a HML term at 12 months and then a balloon payment if I can’t get financing (don’t want that to happen) so I able jumping on refinancing ASAP.

Do any of those deals that you invest in have financing without a balloon?

Here's an example of a loan that could work:30 year amort/2 year balloon$675k purchase10% down $67,5002% interesttaxes $5k?