Ultimately, clear communication and expectations handled in a respectful manner can avert any issue.

I would lean towards recommending that you pursue the deal - plus having the property remain in your family may be a net positive for you and your extended family regardless of the ultimate financial return. 

It's the ultimate win/win.

Most of us have passions that will never be followed, amazing businesses or ideas that will never be pursued… unless we can solve the Cash-Flow Freedom Equation, which ultimately leads to Time-Freedom.

What your deal would ultimately entail is a buyer who trusts you enough to give you $125k and trust you to pay it back while his property is encumbered by both your seller finance note and your original mortgage for $125k.

You can find some absolute MTR gems near smaller hospitals that aren't so obvious but ultimately, housing supply in the area is something I'd say is more important coupled with your amenities.

Even though your Realtor might be good and helpful their ultimate goal is to get the house sold and no one will see the vision you have set for yourself, in the same light that you will.

Emphasize how this arrangement could work to their benefit, offering steady income, avoiding a traditional sale process, and giving them the freedom to move forward with their plans such as buying that sailboat and sailing around the world.If they ultimately decide they’re not interested in selling, you’re still in a great position to continue your search and buy your own property in the near future.

Investors often obsess over how to defer tax obligations and ultimately make poor investments due to being hyper focused on taxes.

Ultimately, it’s about trusting your gut and assessing each situation individually.