I recommend you try one to determine how much extra principal to pay to achieve the same result as the proposed refi or better.  

Just signed up for the next REIA meeting in February and will put together a proposal packet in have in my back pocket.

How do you usually proposed and structure the owner financing?

@David BolousYour IRA LLC can partner with another non-disqualified party on an investment, but you have to be careful how this joint investment is structured, each party would have to contribute capital based on their ownership share so based on what you describe it doesn't seem that what you are proposing is going to work... like Brian suggested, talk to your attorney or company who set this up for you.Question for you: why do you want to bring the partner?

Both the Abstract and Survey shall be dated or re-dated after the date of acceptance, the Seller shall endeavor to deliver the Abstract and Survey along with the draft of the proposed deed to the Buyer or Buyer's attorney within twenty (20) business days thereafter; and(2) At the Closing, to Buyer, a properly signed and notarized, Blah BlahOh wait I see you are talking about Inspection pieces.......

You need to be able to peg with reasonable precision what the ARV is based on the borrower's proposed repairs. 

Any ideas for how to approach this and propose something mutually beneficial?

1) It is not yet clear but it seems that you will be grandfathered in at the time when the changes occur in regards to occupancy changes.2) Per AB-68:"(A) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling if all of the following apply:(i) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure and may include an expansion of not more than 150 square feet beyond the same physical dimensions as the existing accessory structure.

I would do back ground checks to find out about the proposed tenants. 

Getting your first rehab project will require you to create a SOW, talk to contractors, compare and review bid proposals, review budgets, & make countless trips to Home Depot.​You will inevitably make mistakes and underestimate things, but you will learn 90% of what you know by just doing your first rehab!