Additionally, there's growing interest in cryptocurrency as an alternative asset class, though it comes with higher volatility and risk.

Conservative and low risk. 

That is a mouthful, but again, a patient investor with the right risk profile, can be successful in Huntsville.  

I’m trying to familiarize myself with the area more thoroughly.it seems to have a stable increase in prices.Since I plan to live in the property initially, breaking even in the first year is my main goal. (5% down; PMI removed with renovation)However, I’m also wondering if it’s feasible to have some cash flow from such rentals, or if the risk of vacancy is high in this market.Any guidance or pointers from those experienced in this area would be greatly appreciated!

Then she still only makes 2% extra for taking the risk of you not paying versus a bank.

Even if you want to roll the dice, at least is a calculated risk, not a surprise down the road. 

This establishes the legitimacy of the arrangement and protects against audit risks.

What kind of insurance do you carry? 

Key Factors for a Good Seller-Financed DealCash Flow: Rental income should exceed monthly payments (PITI) by at least 1.25–1.5x.Purchase Price: Compare to ARV and market value for fair pricing and equity potential.Interest Rate: Aim for competitive rates; higher rates must still allow positive cash flow.Amortization/Balloon Terms: Favor longer amortization and align balloon payments with your exit strategy.Down Payment: Lower upfront costs reduce risk but should meet the seller's expectations.Flexibility: Seek no prepayment penalties and fair late-payment clauses.Property Condition: Ensure the property’s condition matches terms through inspections.Seller Motivation: Assess the seller’s willingness to negotiate favorable terms.Exit Strategy: Have a clear plan for refinancing or payoff at term end.Portfolio Fit: Ensure the deal aligns with your financial goals and risk tolerance.Vetting multiple deals and consulting professionals is crucial to making sound decisions.

Maybe selling is the best option stop the bleeding and do something that is more risk adverse.