Not only that he gets stepped up basis and sell with no tax  double check that with accountant but I think that is correct.. then take the cash put it in 5% gov bonds for now then get up to speed and see what you really want to do. 

You can't sell a portion of a property like you can sell portions of stocks, bonds, mutual funds, etc.

Is there a type of mortgage insurance or bond you can get for owner financing that secures his position? 

Many jurisdictions will not record a subdivision plat until you've put in (or bonded) the infrastructure (power, sewer, water, roads, etc). 

However investing in DIRECT real estate investments differs considerably from investing in mutual funds, index funds, bonds, money market and REITs that most investors are familiar with.  

The bond markets are worried about inflation. 

Fixed income U.S. treasury bonds are not  attractive at all if you're being paid back with dramatically debased dollars with lower purchasing power. 

I also take pesos, gold, silver, cars, motorcycles, trade houses, airplanes, stocks, bonds.... etc... to piece a deal together and get paid!

The second issue I have with STNL is that if it functions like a bond, then isn’t this a terrible time to buy?

The key is the fed knows they need to help mortgage rates right now so if they lower the fed rate AND stop selling the treas bonds in their porfolio, that will help create more demand for bond sales to keep prices up and get rates down a bit.I can see mortgage rates hitting 5 to 5.25 by spring of next year.