We made the dining room, parlor, and the servents quarters one 2 bdrm apartment.

If the tenant base is that good why the need for quarterly inspections then?

CPAs will tell you the taxation intricacies

If it is a loose, the investor gets the investment back.If you want hands off, the investor will bring 100% plus exit cost in return for 8-12% annualized interest only paid quarterly for a term of 18-24 months.

@Darsh PatelHey Darsh: Great question.From an investors perspective based on growth not taxation or asset protectionIf you want the best taxation advise talk to a good accountant or CPA. 

A few thoughts...that need to be verified since the situation is reversed:1) you will likely need to file Canadian income taxes for rent received and later for capital gains when you sell.2) there is a tax treaty between the two countries that intends to avoid double taxation, but you have to watch for situations where it doesn't work.  

It is going to be a simple loan of 8% interest 2 year balloon amortized for 30 years and paid quarterly.

It is going to be a simple loan of 8% interest 2 year balloon amortized for 30 years and paid quarterly.

Not doing quarterly/biannual inspections of the property. 

You should be able to refinance your guaranteed loan on the property regardless of your current or prospective living quarters.