The house worked very well, I took the shabbiest bedroom and fixed the rest of the house up as I could.

You have a ton of options, but I think the most important is realizing that you should shift that equity to start working for you whether it be through sale, refi, HELOC or other creative strategies.

They are renting for $575 but where I am 2 bedroom 1 baths are going for no less that $800.

I am looking for a 5+ bedroom 3+ bathroom multifamily in a good school district.

She's the creative one, and I'm just the muscle. ;-) How did you find this deal and how did you negotiate it?

We use to host on Airbnb when it first came out (we were the probably the first of 20 ads in all of DC) & made some good extra $$ with our guest bedroom/private bath.

There are plenty of ways you can go about it, you just have to get creative!

I'm interested in some creative ways to do seller financing on deals. 

There are 4 bedrooms(including the 1bed apartment upstairs) with each renting for $375-400/mo She owns the house free and clear, and I'm trying to figure out the best way to go about giving her a fair deal that gives both of us the best outcome.

I converted two living areas into bedrooms and did a massive overhaul.