could be just like a regular deal, but if you're up for pitching, presenting and educating a seller on the tax and other advantages of seller financing, you just might turn it into a seller finance deal.

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

At least now your tax basis is $220k ;-)  What was the extent of the repairs?

Add utilities, lawn and pool care $800-1000.

Plus with no state income tax, cheap insurance, and very low property taxes, I’m probably starting $20k ahead of most people, and that’s a tax free $20k.).

I have a followup question - I will realize a lot of capital gain from this home in Idaho, so I think unless I purchase a new primary residence I will have to pay that capital gains tax. 

From a tax standpoint, there are additional disclosures to make when selling a business asset for less than fair market value to a related third party. 

If she gifts the home to you, you inherit he cost basis and owe all the taxes.

It's a primarily a utility asset, and secondarily a store of value against currency. 

Utility improvements.