But I’m realizing to find all the things I want(casita, pool, 2500+sf, area)and get a good deal will be extremely challenging.

You may quickly realize that the only thing you have control over is how you enforce the lease.

Just realized that a lot if I formation is already on the bigger pockets forum.

Realized we already had a thread going.

But keep in mind that being licensed in Cali doesn't help you make commission on properties you purchase out of state (yes, people get licensed without realizing that). 

I realize it depends on my factors. 

.- I am just about to come back at them with no free rent, but I'll pay for their build out up to the value of 5 months of rent, plus windows/meters/ramp.Now I'm realizing that that whole package is a ton of money, and I won't make any money for over a year.

If you presented yourself as a cash buyer, that may be why he wanted a fast close as he doesn't realize the full situation.

I didn’t realize it was so much dependent on that.

This is a huge bite for a new investor to take, I realize that, but on paper seems to be a great deal if the income streams could stay (current owner has owned and operated the place for the past 40 years and is "retiring" at age 60.)