India is the answer to all those requirements
* Desired location must be sunny and warm most of the year - no more snow for this Canadian thanks.
INDIA
* Desired location must be stable and an open democracy.
INDIA
* Desired locale must allow foreigners to own/sell property - and how much would it cost for a two to three bedroom house/condo/apartment in U.S. $'s?
Ranging from 50,000 USD to 70,000 USD.
* How hard is it for a foreigner to move there and possibly become a citizen?
Easy
* Can a foreigner start/open a biz, and can employing a local or two streamline any visa/immigration requirements?
Yes but overall its also easy.