Lending is tough, you need to know the market you're lending in, usually you want to have an understanding of credit-risk and be able to pull credit and run background to get a better read on your borrower.

I bank with Navy Federal Credit Union, and they have a great 20 year interest only HELOC option in which I could utilize my substantial home equity.

Should I check into local smaller banks here or Credit Unions? 

My first attempts to get a loan ended in some pretty humbling experiences (getting laughed out of a couple of banks due to zero credit history).Fast forward to today, and after building up some credit, a stronger W-2, and a solid professional background, I’m finally back in West Palm Beach, Florida, looking to make my first deal happen.

CA taxes residents on worldwide income but may provide a credit for taxes paid to other states.

In fact, if your tenant does poorly, it may put you in a situation where selling is the best option and you will be stuck using the agent that caused the problem in the first place! 

not sure what the attraction to invest with these folks was.. but it does sound like a meltdown and some pretty poor operators.

How hard is it to get credit reports and I have read some landlords get livescan on potential tenants. 

Dedicate one checking account and credit card exclusively to real estate.

Since the property is free and clear, you might consider reaching out to local banks or credit unions, as they often have more flexibility for smaller loans.