I want to make money, but I also want to be a good neighbor.

Any advice or suggestions would be appreciated.

@Nick Filippides, You can do a 1031 exchange on that property since it is being used for investment. 

I estimate that will take about 8-10 months to get where I want to be. 

He let me know that he didn't "think" the seller would be interested in financing and it hasn't sold because the owner wants full asking price ($330k). 

Even if you create a non-CA LLC, if you are managing the business from California, you will likely be deemed to be "doing business" in California and therefore likely subject to CA taxes.

I believe there’s always a deal to be made but one must have the necessary tools and most of the time those tools are Individuals with Experience.

House is VERY old but well built. 

I'd also be happy to chat with you after as much as you'd like.

I would not take that risk, some would some would not.Real estate is similar in regards to your terms should be based on the risk profile.As another comment mentioned, are you getting a mortgage and this a second position lien?