There is a ton of work out there and a lack of supply.

If you are coming into this hoping to do an owner financed deal because you've got no other way or ability to obtain financing then it's probably not going to work out how you want it to.

Very few people want to take a financial risk when the economy is shaky, but when the seas are calm, people believe that it will be smooth sailing forever and that their risky investment strategies will work out just fine.  

If they don't then you need to work out with them when they will move out. 

Numbers don't work out in my favor.

And exactly as long as the numbers work out for what your looking for, then it's fine 

Explain to them where you're coming from, and then see if you can work out something. 

Do we just need to find a property at a rock bottom price to make these numbers work out?

This means you're potentially going to be totally out of the market and tied up for some extended period of time before you can even start working on the deal.Find a private lender or partner, make your offer, inspect it, etc but don't fall in love with this deal and be ready to move on quick if it doesn't work out.

He is appreciative, and as long as I don't let him tell me any sob stories, I think this will work out.