Seller Financing. Should I seller finance my property?

[Ivan Smith]

Trying to sell our home in phoenix az area and not getting offers so the agent said we should offer seller financing as it will bring in buyers. It was our personal home and a little over 2 years ago we moved out of state and rented it out in March 2021. It's getting close to that time where we would have to pay capital gains if we don't sell it now. House has been on market for 3 weeks and no offers. After reading a few articles about seller financing I'm just more confused.

House if for sale at 725k right now. Offer came in:

Purchase 750k, down pmt 60k. 3% interest balloon pmt at 15 yrs. Monthly pmt 1725 interest only. To mee it seems like we should just lower price and sell and not get involved in this.

Question:

1. what would be a good offer for me as seller? 2. Would I have to pay capital gains since I'm technically still the owner and ill own it past the 5 yr rule?

3. How should it be legally structured? (Land contract or contract for deed or deed of trust?

4. What are my risks as seller ? I heard if buyer defaults it costs thousands and years to foreclose on buyer. Also Dodd-frank rule says I have to ensure that buyer can afford the mortgage or I face fine of 3 years of payments?

5. Do these mortgage payments count as income and I have to pay taxes.

6. How is down payment treated for taxes?

7. Any other things I need to be aware of?

8. Do attorneys structure the deal or realtors? Who pays for attorney?

Thanks. Any feedback appreciated