@John Dean, There's another complication with owner financing when you want to do a 1031 exchange. 

In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name...

How will the air exchanges happen?

By talking more to the police, we found out that the main tenant had a long history of inviting guests in exchange for help around the house and that those relations would always turn tumultuous and that the police visited the house several times each quarter over civil complaints, suspicious activity, noise, drug related activity, and a bunch of other civil nuisance type of calls.

Of course I am partial to KC but help 1031 exchange investors all of them coming into the KC market for the first time and there is a good network here. 

1031 exchange How did you find this deal and how did you negotiate it?

Along with what @John Litz is saying, doing a 1031 exchange on the lower performing properties to buy in areas with more growth potential, would give you that diverse potential for greater cash flow.  

You can leverage HELOCs to buy more properties (I haven't down a down payment since 2015 and between HELOCs, 1031 Exchange, and a partnership, by next week I will have a total of 16 doors with almost no money out of pocket). 

We got a 1031 exchange offer (as I expected) they offered 1.2 Million (150k under our asking).

It's as easy to fail or to run into problems in the "friendly" states as it is in the "unfriendly" states.