Last question I promise!!

To make matters worse, I promised the 70+ yr old widow tenant that she would not be forced to move once I took over the property (Awesome tenants who takes really good care of the unit).

Find a VA guru loan officer and they will lead you to the promise land. 

That 72.1% number is all-important to getting a shot at the overall loss mitigation director's position. 72.1% is the difference between staying at his pedestrian formica-laminated desk and putty-colored metal filing cabinets and being about to move to a corner office on his floor and order an actual wooden  desk and fake woodgrain-finished metal filing cabinets out of the special internal supply catalog.

The problem happened during our last offer on a SF unit that looked promising. 

Then rent it out to someone else, or sell it.I wouldn't do it, even if they promised to pay 1,900 because I know they will default down the line.

The other, and most promising, seemed like they were very flexible with what we need. 

Carlisle looks promising.

This situation looks seriously promising, but I do have a few concerns about your owner finance deal structuring:You're offering way too much per month - If market rents are $900/mo and you're offering her a monthly payment of $500, you've only got $400 left for property taxes ($158), insurance, maintenance, and management.

If this is true then the lady in Malibu is in big trouble.I watched the first 2 episodes and found the show shallow and fake. ( I know I know, it's just a show).