We thought that might still be okay, so we looked at other loan options and realized the only other way was for me to put down about $6,000 in total for closing costs, deposits, inspections and surveys.

None of this seems to square for me.$34M purchase7% preferred returnCash and Cash - 8.5% over 5 yearsWhen deal sold, the principal is returned and 70% of proceeds basedEquity multiple 1.94"Over 5 years, you're basically doubling investment."15.9% IRRUsing that -- and some if the info seems contradictory to me -- how do you simplify to, "If I invested $100K here, assuming their numbers are true, I could expect to earn $XXXX each year and $XXXX total after 5 years"?

I am currently looking back into Fairbanks Alaska since I have formed a team there. 

I have used this strategy in various situations, but most of the time, if the seller is willing to do it, then I will set it up with owner financing because the terms of the loan and the deal are usually more favorable to me than if I were to get some other form of financing. 

I also have 12 units in the form of three 4-plex buildings.

Unfortunately for me, I didn’t have it inspected after the repair, only before.

The HOA is 127.50 a month (lower than most HOA's in this area) and it covers Exterior Mnt of Unit; Roof Repair; Roof Replacement; Blanket Ins Policy; Garbage Collection; Common Area Maint; Street Maint.

His deposit is 2 months rent (~$3800).So my questions are:1- Is it legal for me to make this kind of a deal with the deposit?

Find something in common to talk about straight off. 

This is a common tactic in competitive markets.