My understanding is that you can roll the 401k into a self-directed IRA without any tax penalties, and she is over 59.5 years old so there is no pre penalties either. 

When I read the Senate bill it doesn’t seem to allow a tenant to live rent free without penalty, is anyone else dealing with this?

For example with mine I can do 10% of the original amount each year and double the payments; any thing more and I pay a penalty.

Without a hefty pre-payment penalty the seller has no guarantees you won't?

I would also tell them you want a 12-month loan with no prepayment penalty.

These usually are going to have higher rates and a pre payment penalty if you refi out of it before the pre-payment period.

. - Loan to Value - Interest rate- Term - Is there a prepayment penalty? 

If any potential tenant makes a claim that you discriminated against them because of one those reasons, its an automatic $10K penalty.

Quote from @Amol Kulkarni: #1: you always have the right to cancel without penalty if they fail to perform.

In Florida, it would be considered the unlicensed practice of real estate which is a Third Class Felony; here's the penalties:"If convicted of Unlicensed Practice of Real Estate in Florida, a judge can impose any combination of the following penalties: Up to five (5) years in prison.Up to five (5) years of probation.Up to $5,000 in fines."