ARV about 40-45k)BUT the seller has a mortgage balance of 36kBought it 11 years ago for 48kInterest rate on the note is about 7%Since the purchase price is less than the mtg amount what is the best way to structure the financing for the buyer?

At least, if she can't afford the taxes in bulk, she could try to get a mortgage to spread those payments over time.

There is no mortgage on the property.

there is a loan disclosure at the bottom of the CD that reads escrow account: $5277.03 says right next to it estimated total amount over 1 year escrowed property cost:Property taxes, homeowners insurance. mortgage insurance.

To make the loan secured you need a deed or trust or a mortgage in addition to the promissory note.You should consult an attorney to make sure your IRA interest is protected.

Half of all expenses come from mortgage and you should budget the same amount for repairs, maintenance, taxes, etc. 

Based on what other places are rented for in this area, the rental income will likely cover more than half of our estimated monthly fee (mortgage, property taxes, etc.)I'm wondering if anyone who owns a property in this area has dabbled in AirBnB and what their experience has been like?

I currently rent it for $200 over mortgage/ HOA fees. 

We have a mortgage on our current home with about $100,000 in equity.

Often times the rent will cover or exceed your mortgage costs.