Picking your brain - owner financing or rent to own.

[Jorge Diaz]

Hello there,

I have a property that I rented to a family member, they moved out and now the property is vacant. A friend of this family member asked me if I'm interested in selling the property to them in a owner-finance way, or perhaps rent it with an option to buy, it'll be their primary residence and they'll either rent or sell their existing property. Although I wanted to sell the property the traditional way (I put it on the market and didn't sell) I'm open to doing owner financing or rent to own, I still have a mortgage, but I can pay it off if I need to do the owner financing. 

My point is, how do I go about this? what should I have in mind if I decide to do owner financing or rent to own, how would I treat the payments (in reference to taxes). I've done online research but there's so much information saying different things that it has become confusing.

I'd really appreciate any guidance and if you can point me in the right direction here.

P.S, I'm not a real estate investor, just someone with a house in anther estate far from where I'm from. 

Thanks in advance.