I'm not desperate for immediate cash flow, but I also don't want to invest in anything with negative cash flow.Any advice would be greatly appreciated!

Recording it will require you to pay off the loan in entirety in most cases unless the new bank is willing to allow the remainder of your private note to subordinate in 2nd position which most national banks do not allow. 

You can get a judgement against him, but to to get a lien on his property would require much more than a judgment. 

Your return on a real estate investment is Cashflow and Appreciation.It appears that your cash-flow is negative if you assume the current FMV.The question on whether to keep or sell it is what your required rate of return and what is the appreciation rate on the property?

While this may exempt it from being classified as a rental activity, active participation remains a requirement, necessitating compliance with three tests: spending 500 hours on the property, dedicating at least 100 hours (and more than any other participant), and performing all the necessary work needed.Additionally, long-term viability and consideration of depreciation recapture are important concerns.

Most banks and traditional mortgages "Do not" allow foe the property to be vested or quit claimed into an LLC unless it specifically states it on the closing disclosures.In most cases even on DSCR loans the Bank/Lender still requires you to sing a personal guarantee even if they allow the loan to be vested into the LLC.  

I search on google but all I get are articles and lenders who require higher appraised properties.thank you

Some require you to visually read them while others have data output that could be sent somewhere. 

Sellers are desperate, will pay of better in the long run 

I am sure there are other things that would need to be done first.Someone posted about working part-time at a RE or investor's office, and I would be willing to do that for a fixed, short-term, like 6 months or so, but a lot of the job postings require a license.