The home needs to be in the same, or better, condition than when they moved in. Take

Pay cash, most sellers will not sell the home and keep the loan as that can put them in a risky position especially if the state you are in takes a while to get someone out of a house they have defaulted on. 

Awesome job in taking action. 

The deal penciled really well on our initial intake.

The other advantage I see of lower debt / LTV is that in a downswing I think we're more likely to be in a better position to buy AND to withstand the pressures present.I've read others here see it the exact opposite way, and I honestly don't have the experience to really 'know' - meaning, I've heard the opinion that a bank is more likely to call a commercial note in a downswing with 50% LTV because they have more to gain (equity) in taking control of that house with higher equity, vs. the 95% LTV house where the bank has more to loose by taking control of the asset.

I won't be so "willing" and "nice" in taking contingent offers from buyers unless I have a sizable non-refundable bit of earnest money.

And has anyone else had experience in taking over owner financed portfolios?

@Cory LucasOutstanding in taking bold action on your part!

Is there any preference in taking either a conventional loan on my personal credit or doing re-financing on my property?

If it's not in the condition you would want to see your property kept, don't rent to them.Second, in taking up front money, you set a precedent with them.