This would tie the cash flow directly to rental income instead of issued dividends.Let's assume for the moment that interest in the previous fictional example is not considered a security or that the business could meet one of the common exemptions of the SEC's Regulation D (504, 505, 506).

Family deals are exempt from most seller financed regulations, like the DF Act.It's a good option, all the best!

The general rule is ANY security is required to either be registered or exempt from registration.  

Net rental income from real estate is exempt from the self-employment tax.

Healthcare and education services would be exempt.

I know that the 121 exclusion says we have to have lived there 2 out of the last 5 years, if I understand that correctly then we must sell by July 2018 or we lose the exemption?

That is off the top of my head as I have not researched the SAFE Act issues lately or the Bill, but there needs to be a balance here, and I just can't agree with any blanket exemptions....

I heard that there is a life time gift exemption of $5,250,000 in 2013.

It tells me things like the minimum income required before a tax return is necessary, which states have a homestead exemption for property taxes, which states have unique tax credits (like the one in Arizona for private primary school tuition), what the non-resident requirements are and other fun and interesting tidbits, tricks and tips.Before I begin the preparation for a state that I'm not familiar with, I read through it (at no charge to the client, of course), pick out all the questions that I need to ask the client, then move forward from there.  

The PA Dept of Revenue will likely not consider this exempt.