But that doesn't mean he could take a loan proceeds and then use it for his own purposes. 

If you think there is a strong chance that you will own it for greater than 2 years, I would probably proceed. 

I'd love to hear your thoughts and any suggestions on how I might proceed. 

There isn't a trustee or attorney left that is going to proceed forward with a foreclosure without that documentation.

Could seller financing be offered to the seller in order to get it to a point where i could fix it and flip it and he can take the proceeds from there?

[Ie if there are 10k in open taxes, Title Co will hold 15k of Seller's proceeds and refund approx 5k within 90 days after Closing]IF THE SELLER'S PROCEEDS ARE ALREADY GOING TO BE SMALL, FOR THE BENEFIT OF THE TRANSACTION, SOMEONE INVOLVED SHOULD GET THE OPEN ITEM BILLS TO AVOID ANY DISPUTES AT CLOSING.

You could even choose not to pay yourself at all and re-invest all proceeds back into your business.  

Depending on your state and laws, if she doesn’t come up with the cashiers check in the next 24 hours I’d post a notice and be super firm with eviction proceedings.

Any deposit required to be paid in advance of the start of the work SHALL NOT exceed one-third of the total contract price or the actual cost of any material or equipment of a special order or custom made nature, which must be ordered in advance of the start of the work to assure that the project will proceed on schedule.

Give the manager a large split of the proceeds but keep your rent floor at say $1000 per month (20% below market rents) if the math should work out that if they rent out the other rooms for 55% of all possible days then their rent should be free.Market rents $1250Average night on AirBNB - $80 after feesMangers rent - $100017 active nights in one month - $1360You get $1250Manager gets no rent plus $11025 active night in one month - $2000You get $1400Manager gets no rent plus $600