Meanwhile, I'm talking to this guy and he said in his other property, the little old lady paying long term rent, moved out, and within a week, the neighborhood people had broken in, had a party, broke most of his doors, stolen all his copper and HVAC, etc.

Much appreciated, Cam

It probably depends on how your local rent market and competition is functioning for a similar product.The lady tenant you are mentioning with the cats, kids, and significant other makes me nervous.

The lady on the phone said  that the old escrow will not transfer to the new escrow account, instead they cut you a check to do what you want with so she says.

My second door the lady was really interested in the options on how I could help.

skip tracing isn't expensive, hire someone from Facebook for $5 to skip trace the 2 properties then go to the town hall when open and ask the nice lady at the records office for everything she has. run comps, estimate rehab costs and explain to the owner how going with you not only helps their credit score but makes them moneybringing a wholesaler in will only make it a worse deal for yourself 

Do you sell/exchange anyway and just pay the tax man/lady?

About a week later I get a call from a lady who owns a Modular or Mobile Home and is tired of being a landlord.

I'd love the chance to meet you ladies.

Learned that from my eviction lady, who has seen it all.