One of my main concerns is that there is no A/C.

On one of my California properties.. turns out we have some pretty valuable Tiger salamander habitatdepending on the study we do... mitigation is between 165k to 195k per acre with 1 to 1 and up to 3 to 1 offsets.so 165k and acre to potential of just under 600k per acre to mitigate these guys.. cash to the govmit.and this is just one thing that needs to be addressed... usually the whole property is not affected but a neighbors property is 10 acres and 1 acre is affected depends on 1 to 1 or 3 to 1...now our property is worth 1 million an acre as development ground.  

Cash flow would be ideal, but for this particular property I’m most concerned with the location being one we’d want to live in (A+, A neighborhood, ability to find renters, needs cosmetic work but still liveable, and at least break even (not counting assumed appreciation).

However, the location really makes me concerned.

Tax considerations are just one of the many considerations you'll need to address as you set up your entities.

I'm a little concerned about the future when Foster is reduced, but like others have pointed out in other forums, that really helped spur growth in other trendy areas. 

That might be your clue to who is responsible and will give you an address.

As far as concern over being able to lock in the sale, just ask her to sign a letter of intent or offer to buy an option from her.

The thing that concerns me is the rising interest rates.

Give yourself the margin necessary to address the level of risk you are comfortable taking on and then move forward.There are no guarantees in anything you do.