I have watched my local real estate market closely the past few years, I am on sites like craigslist, zillow, and loopnet numerous times a week seeing what's on the market, what typical rents are, what different types of properties typically sell for.Over those few years I have seen numerous different properties advertised online in my area for owner financing, so I know there are plenty of property owners/investors that are open to it.

The only other - legitimate - option would be a short sale, and she probably thinks - in error - that she can keep that off her credit profile somehow.I'd talk to her about a short-sale and if she balks, walk away.

(Let me preface this post by saying I posted it yesterday and later found some errors I wanted to correct.) 

Hi BP, I recently walked away from a deal because a seller home was unpermitted to be a multi family ( he also had tenants who were paying $1,150 which they broke their lease ,because of numerous reasons at owners fault) I have a buyer willing to buy but seller doesn't want to drop price any further to what the buyer will be comfortable with, should I continue to see if a buyer would be willing to buy it unpermitted at agreed upon price or move on to the next deal ( owner and tenant both called the police on each other, it was a show) it is a good neighborhood with waterfront homes.

There are numerous properties like this, it just takes time to find the right balance of purchasing in an older complex (lower cost) that's well maintained.

I've looked at these areas numerous times.

I currently have a great night time position that allows me to have numerous time on my hand to take up investing.

There were also numerous box-springs, mattresses, etc in the house.  

After the market dropped out I started building technology companies and have been doing so ever since.As of recent I have been building a geospatial search engine which aims to simplify working with numerous geospatial data sets (i.e. zoning, overlays, parcel outlines, etc.).

Lenzy had it right... you must run the numbers and have enough room for error in your numbers.