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.

Pure spreadsheet analysis - how much are you saving assuming 3, 4 5 years rental etc - VS how much you will make WORST CASE for this unit (look at similar profiles on offer around you right now to get an idea).It sounds like you're taking this as a pure business decision as opposed to an emotional one ("I want to own where I live!"

From a purely numbers standpoint, selling the condo may be the best option, but since we are talking commissions, should also mention if you sell you will likely pay 5% to the realtors (15K) plus may need to offer another 5K or so closing cost assistance to a potential buyer.If your condo is in a good location that will attract good tenants renting can be an option.

The typical pure wholesaler is Not an "investor", even if they like to call themselves one.  

I bought it as a pure cash flow play, but the monthly rent was 3% and I thought that was acceptable. 

If there is a personal reason you want it, that's one thing, but if it's purely an investment there's likely a better one (i.e. one with equity).  

@Andrew Syrios Right now i'm staying with my mom as long as I can helps with being able to save money to put into this so the house will be purely a rental property.

Out of pure curiousity, why are you lending on unsecured basis versus a secured basis?