Although no single factor is determinative, the combination of several factors supporting a particular result is sufficient for a court to decide whether a taxpayer held property for sale to customers in the ordinary course of a trade or business.

So the tax would be at ordinary income rate.  

This will be taxed as your ordinary rate and be subject to self-employment tax. 

If it's a "true" 1,700, no garage conversion or patio enclosure, you might get close. 

@Ty GlendenningWhy would you sell a house on owner financing if somebody would pay cash for it.While a lot of people think, seller financing is a great idea, the risk involved to collect the payments that then get taxed ordinary income are equivalent to investing it currently in a treasury bill, which has zero risk.

Are they the same from a Tax perspective, Ordinary income versus long-term capital gain rates?

I have a patio being worked shortly.  

Has a gated small backyard, a shed, a concrete patio, and a walkway to a firepit.

Lesson learned - It makes much more sense to design something unique that you would love instead of something mundane and ordinary.

Treated as ordinary loss another great perk of real estate  ....