Does anyone have any tips on seller financing, or any other ideas come to mind in making this a transaction that makes everyone happy.

Keep in mind you cannot take over an eviction.

I know I am ready to "make a move", but I don't know what is the most important "first" step after reading all the books, taking notes at the seminars, and being motivated from the real estate Podcast.  

(Keep in mind for next time that he probably wouldn't have even contacted you if you would have sent him a bill for $250.)

This is an excellent place to network, build your knowledge and get motivation to get out there and do it!

Ideally, we'd like to achieve owner financing for the purchases but also have the possibility to get commercial financing.I find myself with a small but highly targeted list - owners of more than 10 residential properties - their motivation to sell is a huge unknown for me.  

He is a motivated seller and wants to sell to me.Side question: if an agent sends me a property and I want to offer seller financing, would it be the same process?

If you wouldn't mind that would be great. 

But, just as your daughter has no problem with it, there will be plenty of others who don't mind either.

You may want to factor that in to your evaluation.If you have a particular property in mind, I can check the Replacement Cost for you.