Dev Paul based on what multiple people have said on your post, you need to take a serious look in the mirror and ask yourself why it’s even rational to consider investing in “If it moves we tax it and if we don’t tax it yet we probably eventually will” People’s Republic of California!

Talk with a lawyer... tell them to have their lawyer talk to your lawyer ( sometimes that calms them down or opens them up to be more rational...?)

So I can make a more rational decision. 

Rationalization is the most expensive word in a REI vocabulary. 

Depending on the rent to cost ration on the property, you could have a cash flowing property with 25% equity already baked in for ~$10k. 

However if sellers, as a rational and critical humans motivated only by maximizing utility, are willing to pay that amount, one cannot blame an agent for accepting such generosity.  

There was sacrifice back home, through rationing and people worked well over 60 hours a week supporting the war effort without complaining. 

As for the rational obviously you are dealing with someone that has not respected their financial responsibilities, has lost their home, and is likely very hostile.  

You get maybe a 5% return on your cash  in todays market and reduce your ROI to what most rational investors would view as ridiculously low. 

@Peter Sanchez, I understand the moving IN part, and I understand pro-ration.