@James BlairI do not defer interest I actually will have them prepay it and roll it into the loan amount upfrontDelaying interest will hurt your returns signficantly and if someone is having cash flow issues I would not be lending to them

To know if they truly own the property, you would need to look up the tax rolls. 

For restaurants, rent should ideally be under 10% of gross sales, so I believe $5,500 a month is fair.The seller doesn't have a rent roll or strong financials, and his tax returns are 50% lower than his claims.

Thank you Gino, it sounds like I should look into it further and get the ball rolling.  

Could have sent Rate increases out prior to using Rent Roll for future revenue stream. 

And the saying should be “ let the garbage roll.”  

Unlike traditional mortgages, however, tax and insurance payments generally are not rolled into monthly debt service, and the buyer must make them directly.At the end of the loan term, the buyer either makes the balloon payment or obtains a mortgage refinance and pays off the sellers with the proceeds of a new loan.

For example: A 10 wide x 20 deep x 8 tall unit, with studs, roll up door and doorjambs; is really 9 wide x 19 ft 6 inch deep x 7 ½ foot tall.

You can roll it to a self-directed IRA (SDIRA) and buy real estate or privately lend, but you couldn't do that with your personal rental otherwise you would blow your IRA up. 6.5% right now is a great rate...it's lower than what you can get a 30-year fixed owner-occupied home for.

Next, decide where to roll the money into.It sounds as if you don't want to stay in California.