A tax known as UBTI with federal rates of 37% may apply if this type of transaction is done with any frequency.I would encourage you to look into crowdfunds or private lending from the IRA, as those are most suitable for your situation / capital amount. 

I told my tenant that he is the only one on the lease and we don't recognize any visitors as tenants (per the lease) so I would not be able to help.

I could have just as easily been refinanced into loan suitable for a rental property. 

I'm a long-time listener to the podcast and infrequent visitor to the webpage.  

I'm about the turn the 1st property back to the seller for him to rent it because I'm not able to find a suitable tenant buyer and it's been nearly 2 months.

They are not illegal per se, just not worth the risk involved when there are other more suitable strategies such as wrapping.

An escrow account and a promissory note which is more suitable for a private lender?

It's great to be able to visit or travel to events in other cities without having to make a 9 hour drive.

We still get visitors for ice fishing, snowmobiling, etc.

@Aaron Goetsch,I'm independently working with Lima One as an Approved Broker.I strongly believe that Lima One has the best Rental Loan programs which i think is suitable for your deal scenario.If you have interest send a PM with your contact and i will send you further details regarding all their Rental Loan Programs and assist you moving forward.