That situation is what I need more feedback on. 

This isn't a huge issue for me because I will be making great cash flow from rent every month after a quick and minor rehab (that I will be doing myself).Has anyone been in this situation before or can anyone offer some advice?

Being situated between Woodland Hills and Encino, I would assume Tarzana's prices should eventually blend with its two more expensive neighbors.

Other than coming up with 20%+ down on the full amount, how could owner financing play into this situation to limit the amount of capital required upfront?

I would say this is a very normal situation.

Has anyone dealt with a situation like this?

I wanted to put this out there for the new people even though it will likely be a minor situation.

Working out a situational advantage over other investors.

You were lucky but you will need to stay on top of the situation.

@Steven Hamilton II works with a lot of these more specialized situations and may either have the expertise himself or know somebody who does.