Personally, I would like more flexibility in compensation as it often could make up the difference in parties reaching amicable terms.

:) Pasadena has been a great city for a long time and the crazy part is that it is growing even more. 

You can just approach the seller (or their agent) as a private party and make an offer, either 3% lower or whatever you think will make the deal work for both parties.....Now if you want to acquire some RE knowledge, I suppose it couldn't hurt to have a license....and it will give you a small amount of credibility (not much, it is not hard to get a license)I think you can gain the knowledge just as easily by just starting to buy and sell properties...... 

Consider a lending partner thats invested in your success, offering coaching and consultation to mitigate risks and foster mutual growth, which ultimately makes the loan less risky for all parties involved.

In my experience, cash for keys is best for all parties involved.

I'd present myself as his advocate, but make sure that the police are actually called and reports are actually filed so that you are building third party documentation regarding this behavior if you need it. 

Exploring owner financing possibilities with a clear understanding of both parties' needs and legal implications could be a good starting point.

I would have paid another experienced local investor (an unbiased party not having anything to do with the sale of the home or selling me services) to do a thorough video tour of every inch of the house before submitting an offer. 

The views were stunning, it was just my wife and I (and the photographer), we got amazing pictures, paid a fraction of the cost -- then we had a party after our honeymoon and celebrated with friends and family (much less expensive as venues didn't see this as a "wedding").

I don't think you probably get extra rent for the sunroom.I might pay something extra for the extra space on purchase, but for the most part I don't think they really add value.