Quote from @Gabe Walters: Sit down with a pen and paper to calculate your actual losses, then see which one hits harder.

What was supposed to cash flow on paper isn't my reality - my suggestion is don't buy Class C inexpensive properties OOS (best left to locals). 

I would like to sell the property to the restaurant operator and they are willing to buy. i want to hold the paper on it to get the interest and what I'm hoping for is deferring the capital gains taxes until the balloon payment would be due in 5 years.

so even though you’ve talked to someone, you still have to check the official papers. 

those OOS numbers look great on paper... but this can happen:https://www.biggerpockets.com/forums/963/topics/1195280-expe...https://www.biggerpockets.com/forums/48/topics/1193623-rent-...i want to be clear - i'm not saying OOS is not possible, or a bad idea. 

On paper build your empire.  

Us bank played trustee and guarantor in sham of a foreclosure where they could not prove they were a PETE  and had been hit with their 4 the ftc sanction FOR stealing homes, used hole in the wall attorneys in Bellingham using typos in name and address to not get flagged for too many foreclosure by the courts, Windermere stellar real estate who say outside of my home waiting to lock me out despite supreme court stay on their theft, judge Lewis who signed every Forged/inaccurate/misleading  paper they put through AND denied my restraining order of the real estate company staying called them to see if they were harassing me and they Said no so denied temp and all together day in court altogether plus put a no Bail hold on me after looking my arrest for trespassing even though was taken out of his jurisdiction and in federal court staying paperwork not filed correctly then laughing saying I didn't know why You're here is in supreme court when I got out of jail and made it to court hearing, the assessor for king county who was on third foreclosure company because feds kept shutting them down so opened new one in different name, every process server was at least 200 miles from me and each one different for each document never served to me but judge Lewis signed them anyways(one was supposedly served to me 3 months before case was even filed), Vancouver Police department who had no jurisdiction on the civil matter that arrested me and gave my house keys to the realtor that was sitting outside waiting, and finally to the site veteran that they used to sign in all three places to transfer title and get veterans protection for title after 2 illegal auctions, one public one private, where they were only bidders and opening bid was above value of house, paperwork stated was bought by lsf8 AGAIN!!! 

I did a few and someone turned me in :) and sure enough I got a cease and desist and had to pay a fine and spend 20k creating what State of Oregon  calls a Real Estate paper offering !!.  

Their core function is to act as your official registered agent for service so if you are sued, the lawsuit papers can be served on your registered agent. 

The seller can submit papers to a virtual data room, and the buyer often develops a list of questions for the target company.