My primary concern is repairing the home and re-listing it to minimize holding costs.Does anyone have any experience with this sort of event?

I'd be less concerned about the rent/price ratio and concentrate more on meeting your cashflow/ROI minimums.

So you may be in for a devil you know rather than the one you don't situation - which is why you're not feeling the love for a 1031 exchange.Many investors (we're talking like rats off a sinking ship numbers) are leaving areas like this (not it's not just CA) and putting their money to work in other geographies or other classes of property. 

Trust me, it will show much better when they leave and you have gone in to touch up paint and clean the place.

This causes my note to increase a few hundred dollars a month but will not have to put money down for closing and instead leave with cash in hand.

Or "your yard guy" could let out a dog, leave a gate open, etc.

Again, if a seller agrees to owner financing, they are agreeing to leave some or all of their proceeds in the deal, by way of loaning the funds to the buyer. 

He was nice but at the same time was saying about a 30-60 day notice to leave. 

Someone who knows the 1031 timing, legal and tax and financing concerns, and finding a deal to buy. 

I own a rental property (a single family house) on a street where they're building a large "HUD 221(d)(4)" multifamily housing development across the street from the house.  It's a nice up and coming centrally located...