You just have to stick with it and not compromise.

It's one thing to compromise by being a few blocks further from your favorite coffee shop, it's another to not feel safe in your home.I would use a list service or the public property records to target 3- and 4-unit properties in neighborhoods you like.

The biggest challenges are the importance (I cannot emphasize this enough) of the team that you are working with and short-term financial challenges (you'll end up paying more interest for a few months) as well as maybe some sweat equity or personal time that might be needed (choosing fixtures, finishings, etc although that can also be delegated to a reasonably priced interior designer).What is important is for you to have a good assessment of your priorities first and also how much are you willing to be compromising in the short run for a much higher long-term return.

Vet your contractors well, take the time now to understand the fundamentals of building science, and be clear about what you want done, why, and what you're willing to compromise.

Had to make some compromises on things like 2 car garage (only got 1) and a backyard (got front courtyard and open back area), but we are looking at it from an investment standpoint and plan on using it to jump to something better next. 

Here are just a few:Never compromise your rental approval standards - These do not sound like ideal tenant/buyers (T/B's).

I know of landlords who were unwilling to drop prices and compromised on tenant screening standard (also in the Bay Area).

Neither of my tenants got along and I constantly had to be the middle man to disputes and find ways to come to compromises or setting new rules to follow.

Either way, I would try and come to a compromise if it is a property that checks the boxes for you, because I know in my market in Connecticut it is very rare to find a seller that will even entertain seller financing primarily because they can't grasp the concept and/or they need the money from the sale. 

I agree with Cj that a compromise could be you having the title and managing it all on paper, but letting your daughter get as involved as she wants to.