Welcome @Zach Ogle, sounds like you are doing pretty well with taking all the right steps.

sounds like you have a great opportunity. i recommend the contact for deed route. as you mentioned you can get a lower down and more flexible terms. if you can get a 10-12 year ballon payment you should have no problem refi'ing out prior to that with a conventional loan and pay off owner contract. i would try to get the per unit down. you could try to show the total amount you would be paying when you add interest into the equation and see if he will come down on asking price, at least to market if not below. as well as play up the continued cash for with zero management headaches. ultimately if it cashflows well and you have good fixed debt for 10 plus years my experiences has been that price per unit is less of a factor. cash flow is king.

Without going into a long winded answer, it sounds like your main concern is that the balance was increased by 25,000 which put your in a less equitable position.

You sound like me.

It might sound attractive to pick NC because of prices and supply of inventory or what most people would say "better deals."

@Chris Usm Sounds like she's trying to unload her problems on you.

Overall it sounds like you and your client dodge a bullet here.  

Its one of those phrases that mean nothing while sounding good.Are you willing to search courthouse records for hours on in with no compensation other than to learn the process.

Exactly as it sounds, my printer has kicked the can.

@Vaughn Franklin  Maybe I'm reading this wrong, but it sounds like you may be anticipating in an instance where you don't need to.