This will be a hell of a project to take on and it´s safe to assume that it will take up an incredible amount of time and energy (and stress!) 

When I started REI was in the late 70's early 80's when owner financing was very popular in investment properties.

The incredible low bar of entry in many parts of the US...

I know that everyone says it's incredibly rare but it's a definite concern for me.  

I'm currently looking at pre-forclosures and REO properties in my area as the current market values of 3/1 and 3/2 SFRs (most popular rentals in Hollister) would lead to significant negative cash flow.

These types of units are very popular in my area and there is a waiting list to move in.  

I have made several incredible deals by telling the seller I will do the legwork, but that if tenant won't leave or deal is too big of a hassle we will not close.... 

If you haven't discovered it yet, the Bigger Pockets podcast is an incredible area for learning.Since I have been in residential construction for over 25 years I can give you some advice on rehabbing when you are ready.

I definitely believe there is an incredible opportunity in the situation stated, even if one were to not sell the house.

I politely told him I get incredible rates and terms from non-bank lenders and this wouldn't even be on my radar screen.The only time I look at local banks is when it is a value add smaller type deal that other lenders do not want.