This is where the negotiation skills of both parties come into play.

For purposes of determining the reporting thresholds, you must aggregate gifts received from related parties.

If that is awkward to address, consider getting 3rd party management and it will be business as usual for them.

If you decide to have the claim adjuster give you an offer, and you feel it is not a fair amount, you can ask to have a 3rd party appraiser value the property. 

There are ways to do it that I won't state on biggerpockets Not suggesting anything illegal of course, but here is the mindset -  You have to make her want to leave.......really badly....Daily disco party on the property at all hours lol 

@Kenneth GarrettPlease, for the sake of all parties involved, scroll up to the post a made a few days ago, click on the links, read through those threads.

A few examples that have been surfacing regularly across many states- Crazy late night parties from STR tenants... the landlord is liable and can be fined or worse, depending on the location and severity.

It's going to be hard to place the specific blame on one party. 

Given that the seller is willing to finance (which I think is good), I'm also aware that without a third-party bank lender I won't have them watching over my shoulder making the normal checks.Is the best course of action to hire a local real estate lawyer with experience in commercial property to make sure I don't miss anything big?

The best part is they cost you nothing out of pocket!