So personal preference and your goals. 

I am currently not in the US and won't be able to see the house in person.

With seller financing, the person selling the house lends you the money, and you pay them back directly.

Even personally holding the discussions with the tenants potentially damages YOUR outcome.Landlord Representation in SF

I have no doubt the properties will appreciate over time though.

Unnamed person may not be held legally or financially liable for damages and/or unpaid rent in landlord/tenant court.

Be thankful they are taking this step on their own to ensure they don't get behind and stick you with unpaid rent.I'm sure how much they may be approved for varies on a case-by-case basis, but I have tenants who have paid the full rent for multiple months through COVID rental assistance.Your role is limited, and in my personal experience requires just a bit of information on the balance due and a signature.

I've purchased two properties personally utilizing seller financing and represented at least a handful of buyers acquire properties with private mortgages over the past five years including friends and family members.

Tennessee doesn’t have personal income tax but if we create an LLC we would have to pay state income tax.

If I have doubts, I will want to either strike a deal with your contractor myself (or assume your deal) - or use my own contractor.