She will be generating enough cash flow each month to pay the student loans and if she bought well the rent would go up yearly and so her free cash flow would increase and by the time she retires she could be brining in 150-200k year. 

With rates moving higher, it is likely that your rate will increase in the future.

I did not know, living in Florida, about the  California Foreclosure Prevention Laws which have increased the time and the monetary cost of foreclosing on property in California.

I'll edit and increase capex and PM and readjust the water/garbage/sewer fees and see what happens. 

For instance, if I purchase a property with a conventional mortgage, will it be harder to refinance this in 6-12 months after the property is repaired and the ARV has increased?

Maybe use this to help with closing costs and improvements for your multi-unit home you want to live in/rent the other units.This would let you charge more for the other units being rented and increases your cash flow.

Questions: Seller proposes to value the house at $85,000 and charge 5% interest for the first year, and incrementally increase the rate to incentivize the refinancing. 1) Is it likely that the buyer would be able to refinance within a three year period given his credit situation?

@Doug PetersYou can invest in single family or multi family in Victorville, Hesperia, Apple valley and adelanto In high desert area You can invest in Redlands, Beaumont in riverside county I am told Yucca valley is also promising In the metro area, you can network on different real estate meetups and check on duplexes, triplex or quads in long beach, wAtts, Inglewood etc I do invest out of state in Memphis but prices have increased in last couple of years and cap rates in decent areas have lowered.

@Tanner MarseyI'm in agreement with the others in this thread - it is time for a 1031 exchange if you are looking to increase cash flow. 

He plans on living in one of the units and renting the other 3 out as well as improving the property and increasing rents.