We also buy pure rentals that make sense ;) We own all over the country and self manage the properties.

We also buy pure rentals as personals were just a starting point.The first thing you and your partner need to figure out is what "focus" you want to do, Buy and hold, wholesaling, etc.

We lived on one income and saved the other invest in pure rentals.

A beneficiary can also be the trustee.My opinion is much like Ned's most is pure guru and attorney bunk selling a product when it is not needed at all.Anything done intentionally, torts or illegal, you will not skate scot free because of trust or LLC.

We are looking at a pure flip, flip and hold or rehabbing another primary and turning our current into another rental. we have a $50 HELOC on our current primary. we are looking in the under $50k so that the transaction will be basically cash. 

You still have taxes, insurance, property management (even if you are paying yourself to do it) and, unless your brand new building is made out of pure titanium, at least some maintenance and the CERTAINTY of eventual capex.

If you don't want to move you need to focus on pure investment properties.

The problem I am having right now is that I have never done it before so don't completely understand the differences between owner financing and originating a loan on some other purchase and sale transaction in a purely lending capacity.

Since you don't have a track record, I think you're going to have to treat this investor more like a partner than a pure investor.If you're looking for a methodical approach, Alan Cowgill has a course on this topic.

Welcome to bigger pockets : ) One thing I love about this site is that it is sooo pure.