I would definitely NOT do this deal as it is currently presented.IF it were a lease option, sub-lease deal, I would only consider it IF they put down a minimum of 10% and I would NOT give them title so you are left foreclosing if the deal doesn't work out.

I work out a 5 yr plan.  

I bought this with a  zero down VA loan, so I don't really have any money into it (other than Cap Ex), and looking at projections it should work out over time. 

I am planning on using a management company to take care of it anyway so I figured it would all work out well.

I would get it under contract subject to being able to work out a deal with the IRS.

Then I say,  "Do you need all the money right now or could I show you how to  turn it into $400k  with almost no risk and all of my high net worth clients like to do this strategy" then they ask how and I make an appointment to see the home and  work out the terms.   

Owner financing is mostly found with distressed sellers looking to sell but can not find a buyer bc of not enough equity or whatever reason, thus an investor or buyer comes along and they work out terms.

You can start the eviction process by first offering them a cash incentive and diplomatically asking them to leave and if that doesn't work out, then courts is the last option.The "burden of proof" is on the Landlord to demonstrate that you were able and willing to resolve the renter complaint.Good Luck !

We still have to workout some things before we make our first offer.

@Charles Ma to get buy and hold to work out in SF you need to pretty much need to line up some stars.