Would you send over the offer terms in a seller-financing contract or send over the potential returns for seller based on analysis?

I am concerned that they might not be able to afford the rent. would you qualify a prospective tenant based on these numbers? 

I only do 12 month leases and re-evaluate the rent price based on market conditions at that time.

Investment property HELOCs are hard to find but a closed end 2nd mortgage on an investment property is going to easily be in the 10s and up for an interest rate.More about DSCR loans:DSCR loans won't use your income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.Here's a bit more in detail about how rates are calculated for DSCR loans:1.

Some open a limited number of permits and throw everyone into a lottery system.

Namely, transfer taxes based on the assessed property value (even if transferred for a $1) & presumably additional accountant fees related to basis. 

Here's my advice based on an 'n' of 1:- in my case, Insurance company agreed to pay 33% over asking price.

I expect to offer to keep the rental rate the same based on the market, but know when I was a renter there was always an option to go month-to-month for a higher price. 

I would assess the risk based on the title search.

Attend REIA meetings not only in your target investment areas but also in regions where potential out-of-state investors are based, Use LinkedIn to connect with real estate investors and groups.Engage in real estate forums like here in BiggerPockets, where many investors, both seasoned and new, gather to discuss opportunities, seek advice, and network.