Jim Collins references this mutual fund in his 'Simple Path to Wealth' which is a great short read: http://jlcollinsnh.com/2011/06/08/how-i-failed-my-daughter-and-a-simple-path-to-wealth/

And if you let the late fees go once, you’ll have a hard time enforcing it if it becomes a habit.You are starting off operating from a place of fear and already mentally preparing to avoid that fear.

She said her daughter did some digging on the tax assessor site and found my name and contact info.So, I told her my plans (what I wrote above)...she then proceeded to ask if I was open to "options" (i.e. owner financing).....I said sure.She claimed she needed to talk to her son (as he "has money" according to her and she doesn't....take that for however you will), but she is very interested.She said she would call me back in a few days after talking with her son and she'll let me know.Ok.....so I have never owner financed anything and while it's certainly not my first option, I'm at least a little intrigued depending on what she comes back with (partly because this has been a nightmare and I'm glad that someone is actually interested).I know that I have to pay back my outstanding mortgage on the house, but I'm a little confused as to the other parts of the transaction....-  If I did owner finance, do they "own" the house, i.e. responsible for all taxes / insurance / flood insurance (it's in a flood zone) / repairs, etc. or am I responsible for those costs?

Don't start off offering to buy a house if they don't want it.I generally give them $200 for their time and they are happy to get $200 on a house they had already mentally walked away from.

I still have family and friends there, but I moved to northern California for grad school 15 years ago and currently work and live (rent) near San Jose with my wife and 2 young daughters.

You will have challenges on every deal especially your first; are you mentally prepared to get kicked in the teeth and get back up?

I found it ended up being more mentally draining than it was the actual time spent. 

@John Thedford mentality is great. 

Your post made me audibly groan, I just hope I didn't wake my daughter!

I did this for a while to make extra money, and it was helpful, but I decided to start the online thing from home because I could spend time with my family until my daughter went to bed at 8pm.