Tax question for an owner financed property

[Alex Johnson]

I wanted to throw this out to anyone who may have a good grasp of taxes due on the sale of a property.  I have a family member who owns a property outright which they have been renting out for the past 20 years.  They recently received notice of their tenants plans to move out at year end which has prompted them to look at selling as they no longer want to deal with managing it.   I have offered the idea of owner financing the property from them, which they are interested in.  To put my offer together I want to know a little more about taxes and fees due on sale of the property to help determine the net proceeds after the dust settles.  My main questions revolve around if the equity is taxed as a capital gains and if so, how heavily.  Does owning the property outright change anything about taxes being owed?  Also wondering about any other costs associated with closing.

General Numbers for the property:

Purchased for 47,000

Current Value 190,000

ARV 255,000

Thanks so much.