The seller must've been very motivated to retire...are you buying any residential properties now or does this project pretty much consume all of your attention these days?

I just want it to work and be a positive experience because I know that will keep me motivating to continue investing and building my portfolio.

Then she still only makes 2% extra for taking the risk of you not paying versus a bank.

So I did not pay extra for it, but chose it anyway over other places.

That means 500 calls a day finding motivated discount sellers.Probably other positions too, but that's a start.Are you getting any good finds on the house hack? 

I also understand that some cash buyers, unlike many of those motivated by greed, are honest and knowledgeable, however I find it difficult to identify them.

But it takes time and energy from internally motivated people who take responsiblity.

Key Factors for a Good Seller-Financed DealCash Flow: Rental income should exceed monthly payments (PITI) by at least 1.25–1.5x.Purchase Price: Compare to ARV and market value for fair pricing and equity potential.Interest Rate: Aim for competitive rates; higher rates must still allow positive cash flow.Amortization/Balloon Terms: Favor longer amortization and align balloon payments with your exit strategy.Down Payment: Lower upfront costs reduce risk but should meet the seller's expectations.Flexibility: Seek no prepayment penalties and fair late-payment clauses.Property Condition: Ensure the property’s condition matches terms through inspections.Seller Motivation: Assess the seller’s willingness to negotiate favorable terms.Exit Strategy: Have a clear plan for refinancing or payoff at term end.Portfolio Fit: Ensure the deal aligns with your financial goals and risk tolerance.Vetting multiple deals and consulting professionals is crucial to making sound decisions.

The 2-3% points in extra cost are worth it if you plan on using as I described above because the use would be for a few  months at most and due to that short term use you can survive a rate adjustment up.But, if you have no plan to payoff the debt like when using for a down payment on a long term hold why pay the extra cost for flexibility and have the additional risk of the adjustable rate with the amortization looming when you can get a fixed rate second mortgage. 

Quote from @Scott Mac: Maybe the infrastructure, electrical grid, water sewer, pavement thickness on the roads, cannot handle the extra people in the area.