If you do do an owner carry have the title held at a title company and make payments directly to them.

We would like to do a cash-out refi and we have run into challenges because of the privately held mortgage.

I can self manage my own properties without that license, but does that still apply if the property is held in an LLC instead of directly in my name?  

(B) Upon termination of the rental agreement any property or money held by the landlord as a security deposit may be applied to the payment of past due rent and to the payment of the amount of damages that the landlord has suffered by reason of the tenant's noncompliance with section 5321.05 of the Revised Code or the rental agreement.

I have heard of towns with a "flipping tax" that is imposed if a property is held for less than 1 year, but that doesn't sound like your situation.The inspector may be asking why you're moving to try and determine if there is some issue with the property.

I hope to start investing again soon but this property has held me back from continuing forward with real estate investing. 

What I’m about to say is a summary of some Jedi level **** that should be looked into further on your own.Yes, you should own an LLC in every state you hold property BUT those entities should be setup as pass through companies and should all be held by an NV DE or WY entity.

I do not know exactly how mortgage lenders view this, but if you held the note for say 5 years, by the end of the term you may be eligible for bank financing now that X amount of years have gone by. i would figure out how long a bankruptcy stays on your record and tailor your seller financing to that. you do not want to get to the end of the term and have a balloon payment due to the seller and you still cannot secure financing.

Besides even being cumbersome w/ all the rules and regulations and causing missed opportunities, I think the tax deferment I'd be giving up is also diminished by the fact that real estate held in a self-directed IRA does not get the benefit of depreciation nor can you do a 1031 exchange.

He is taking care of himself and you are responsible for taking care of your business.What you need to do is prepare to find a new tenant and inform him that you expect his assistance in showing the place and that he will be held responsible for the rent up to the date a new tenant moves in.