Maybe split the cost of putting in a large, non discreet security camera?  

So, instead of threatening, I would approach the seller with additional non refundable earnest money if you fail to close again by 9/15.

These usually call out how a foreclosure would proceed...Judicial or non-Judicial.   

- Any obvious risks to investing in the area (such as non-sustainable economic growth)?

If the reason they filed was medical bills (which is quite common) you are probably okay, if they filed because of their trip to Las Vegas and they lost too much money, maybe not okay.Every filing is different and you may want to look at the circumstances before you decide.

It's a rare out-of-state private lender has both of these.The real answer to your question asking, "How do I vet a non local private lender?"

I have some medical issues that prevent labor already, sometimes typing in the office is to much.

The function of individual leases (which do not designate bedrooms) is to provide the tenant the peace of mind that they will not be held financially liable for non-payment by the other occupants, and to give us the ability to take enforcement action against individual occupants without having to involve the other residents.

Depending on the type of financing and your financial strength, you may have to bring someone in beside you to guaranty the loan (assuming you can't find a non-recourse loan)

Since you're in San Jose, I'm willing to bet that your original cost is the lower of the two.Use your tax assessor bill to determine the percentage that is considered land (non-depreciating) and the percentage that is considered depreciating rental property.