They both sound like they know what they are doing. 

@Jim K. finding a replacement renter would of course be subject to the landlord screening.  

@Ian Godfrey sound advice!

Buckeye sounds really interesting especially since it looks like it’s backed by one of Bill Gate’s investment companies .http://www.businessinsider.com/bill-gates-smart-city-pros-cons-arizona-urban-planners-2017-11Looks like they bought the land around $7500 acre .It makes sense more people are moving out of CA to Arizona and other lower cost lower taxed states .

But it's a not replaceable area and city with so much high income professionals live there.

Under 500k.That all sounds pretty good!

As far as the previous owner, it sounds like you have an agreement with her to let her stay for a period of time at the reduced rent.

An aggressive split sounds great in beginning, but if you are a performer then a cap is almost a necessity to maximize your share. 

Doing a full-blown rehab is one thing, doing a quick cosmetic turnover (replace carpet and paint) is another.   

I think maybe I discounted looking around the metro because of the price appreciation over the last few years, but it sounds like the consensus is there's still value to be found around here.