Hey Aaron - sounds like the sellers (likely due to age and lack of familiarity with owner financing) are probably not going to bend on the financing piece of this.

It sounds like you have equity in your property based on your numbers provided.

you need all 3 of those. no offense but just to be direct - it sounds like you may not be ready to make offers.are you looking at properties in person? 

Not hustle as he sounds like a passive investor as his age would suggest that he doesn't want to be in debt for the next 15-30 years and risk quitting his day job that close before retirement.You can always purchase land in California and build a small cabin to rent out.

Love seeing people get started in real estate investing :) It sounds like you're doing all of your research and have a good gameplan.

All the best  This sounds great. 

We are currently taxed at 25% income tax level, 14% sounds a much better choice.

I am particularly interested in areas which I can either start earning right away as short term or long term rentals - Miami area or Bay area sounds like a good option for me.

So yes, it sounds like what is happening may be legal. 

She sounds like a giant PITA who will only get worse,This is actually a gift to you - gives you a very valid reason to get rid of a bad tenant.