People are getting desparate for a deal and don't care if the price is high or inflated.

This adds an additional layer of risk and you really have to be careful here. 

The idea with this strategy is to target heirs, relatives, or spouses that have no time to take care of properties that were literally just given to them.

He takes great care of the space, does minor maintenance himself, and I get the rent usually EARLY by a day or two. 

You definitely should seek the advice of an experienced elder-care lawyer.   

@Tamara Shipp in your situation I would be super careful about using the equity in your property for anything.

Also in those older home you should really be careful on how you lay it out.

IDEALLY I would love to find an investor who basically has been doing this and wants skin in the game but does not want to deal with the head aches of the construction or management side.

Who cares what BP thinks, only matters what the seller thinks.

Be careful here; as entrepreneurs we all suffer from the fact we see opportunity on every corner.