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any rules or suggestions on this? How long do I wait?
What is the correct way to go about this without looking like some kind of vulture? This is not the place that I work so I would need a cover letter stating that I knew the person and worked with him etc.
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I would wait until it has been made public that there is a job opening. Otherwise, I would compose a cover letter the way you would to apply to any job.
Find out the hiring policy of the company. Then write a standard letter and use the application process. If you reference that person, there is no tasteful way to not look like you are a vulture. Follow standard procedure.