I’ve been in this space for a long time, coaching and investing, and I love helping people get started.

Did the proceeds from the sale count as short term or long term capital gains?

Yes, they can be slow with the first payment, but as long as the HUD paperwork is complete (essentially a promissory note here), the money always comes.

It's a long game, not a sprint. 

I currently work with investors to build their portfolios with Turn-key long-term rentals, making it hands-free for the investors. 

If you can purchase this home with private money or seller financing and get a $110k loan, then you could do a rate/term refi right after so do a 90 or 120 day note to secure the property and get it in your name, then refi into long term debt using the full appraised value. 

I would be concerned long term that STRs could go away in some of those areas.My 2 cents as always.

Completing the setup will likely lead to smoother operations and peace of mind in the long run.

As a investment property lender we saw a lot of success with flips but an even bigger jump in BRRRR success with borrowers holding as long term and short term rentals. 

Not one lease in the entire country says a tenant can’t take the appliances when they leave, even long term leases.