I'm not familiar with your market, but here are some thoughts:750 Sq ft is small for a 3/1.Interior looks like a flip but it seems like it has been owned by the sellers for a long time...so maybe not.They have been trying to sell this property for 6 months and have reduced price. 

With newer notes especially, partials reduce the discount.I'm not a fan of balloons for seller financing - especially shorter than 10 years.

The penalty can be reduced, but there's a fee (or you take a higher interest rate). 

A 1031 exchange doesn’t apply, but funding through a self-directed IRA can defer taxes, though profits from debt financing may trigger UBIT.To reduce taxes, consider forming an LLC for better expense deductions, offsetting gains with investment losses, or holding the property for 12+ months to qualify for lower long-term capital gains rates.This post does not create a CPA-Client relationship.

Maybe half upfront and reduce the rate of interest on the balance..

It is a new construction where they will not reduce the price in lieu of broker commission to keep their comps high.

Step up in basis to reduce your heirs' taxes and morePlus the real estate tax "deferral" can end up being permanent if played correctly

Property management fees and software subscriptions are deductible, and depreciation reduces taxable rental income.This post does not create a CPA-Client relationship.

Sugar wins a lot more deals than vinegar.  

Just be mindful of the following things when it comes to California.California does not recognize Bonus DepreciationCalifornia does not recognize real estate professional status.Therefore, you can potentially reduce your Federal taxes but not your California taxes.