On the of the reasons my husband and I moved to Indy was housing prices in Madison are very competitive, so I can tell you that much.

We’ll do it for legal reasons.

The reason I'm skeptical is because banks rarely lend to LLCs, they prefer individuals, correct?

11 times would be a bit irritating, I do have the ability to return the phone call in a fairly reasonably amount of time, but seriously their emergency is not my emergency.  

She wants to hold on to it for sentimental reasons and not convert it into a rental.

I have reason to believe there were misrepresentations and shady practices around this investment.   

The reason I side tracked on law school was because I did not want to incur a large amount of debt, spend 3 years in school effectively allowing me to miss out on investment opportunities while not generating any income during that time period.

Am I just worrying about nonsense or is this a reasonable concern when it comes to financing properties?

It's reasonably priced, looks awesome and has the maximum possible wear rating (AC5).  

For this reason, I would say don't pitch owner financing until you've already established credibility with the seller.