Since as a buyer, in most cases, you don't pay the realtor you can get some great advice from the right realtor who can help you walk through your situation with their expertise. 

I would consult with a attorney whom you can work with on a regular basis, to protect your best interests.

@Teri S.Right, but I want her and her family protected.

Jeff, you should not have a property in your name without a mortage on it, just from a legal protection point of view - with 100% equity you are a much more attractive target for a claim than with 25% equity.

This is your protection to insure you do not lose a month having to find a new tenant when they bail at the last minute.

This will be my first owner financed sale in California.The main goals: Control and protection, Ensuring that in the event of foreclosure the process is quick and non-judicial.Anyone who has carried back a note in this state who can share their insights would be much appreciated. 

And choose wisely with important decisions like how much to stock up on 9mm, .40 cal and 5.56 to protect the homestead when things sour.  

Establish your target criteria, price range, age of property, rehab/light rehab/turnkey, neighborhood, exit strategy....Research Asset Protection and get started on the right foot.  

Keep in mind you’re holding a prime asset- good quality tenants, always in demand, fixed prop 13 protected tax base.

Entity is normally used for liability protection, but until you have a sizable real estate portfolio you will be just fine with adequate amount of liability insurance, be sure to get at least $300K to $500K of liability coverage on your landlord policy.