Or would the sale be considered to have already happened 3.5 years ago, the owner-financing be considered a loan, and only the interest on the loaned-out money be taxable?

Welcome to BiggerPockets Erica and best of luck investing!

Investment Info:Single-family residence buy & hold investment.We purchased a property that had a standing farm house already, so as we moved into it we began renovations on the adjacent Amish cabin.We finished it out and listed it as an Airbnb to much success, with less than 5k in refinishing costs.What made you interested in investing in this type of deal?

Its a growing market, and a great place to invest for flips and rentals.  

I live and invest around Marquette.

In my 17 years of real estate investing, I have not been sued once, despite experiencing major property damage—such as two homes burning to the ground due to faulty wiring and a tree collapsing onto a master bedroom while a tenant was sleeping.

Since you’re open to investing nationwide, start by analyzing markets with strong cash flow and appreciation potential.

Investment Info:Single-family residence buy & hold investment.

Quote from @Aidan Birmingham: Hello, I have been speaking with an investor who would like to partner with me on some future real estate investments.

But I find that most people want to invest in areas that are solid and that don't have bad tenant quality.