Plus if you relocate to another state it should make enough to hire a Property Manager to take care of the property for you. 

(I posted in the Florida section as I didn't see any specific mortgage or debt sections, feel free to relocate the thread as needed.)Thanks for any input you can provide​​​​​​​

More problematic will be relocation payments that may be required. 

She’s relocating due to owner selling the property.

This is just another example of what can happen when the Government gets involved with (IMHO) sensible and responsible practices of landlords and the Gubment looks for reasons to restrict and fine them.  

Is there a common practice to shop this deal around (for funding) to let's say private lenders, without them theoretically stealing the deal (Property) from you?

FYI, I'm no longer a practicing (or licensed) attorney, so none of this is intended to be legal advice.

That being said i would strongly recommend one for a couple of reasons.Until you have a solid understanding of the ins and outs, standard practices and the risk involved its always the smart play to enlist someone that does, also you will need a title company as well and most RE attorneys i deal with also take care of the tittle side of the house. 

The 1918 was practically the stone age compared to 2020.

I think there might be some bad debt collection practices if the repayment was solicited when no debt was owed.This sounds like a scam, to be honest.