Her first thought is real estate as she knows a tiny bit about that from buying a home.She easily has $750K in cash and is too busy to think much about what to do with it.All of that said, I agree with the sentiment that focusing on SFR might not be the best path.

But then again, I'm not sure if you were implying that I did... lol.Cap rate is a reflection of investor sentiment. 

If this is a sentimental sale for them (i.e. they've owned it for 30 years), let them know what your plans for the property are so they know it'll be in good hands.

That's my sentiment overall as well. 

The home is sentimental so we would like to keep it but we are not set on her living in it.

My attorney friend very much echoes your sentiments though I think it ultimately leaves me with the same uncertainty for starting out.

It has some sentimental value so they said that they will not be going lower than $200,000.

Appears the general sentiment is that prices are higher than they should be.

I want to highlight the above sentiment because it should hold true for every state.

I echo Russ's sentiment.