I live in a very expensive market wich make it impossible buying here so I decided moving out of state to start my house hack

Note they will cost around 35-40/mo so make sure you calculate that as part of what you actually earn as that is a seller expense (if it’s gonna be owner occupied property) - if it’s not then you could charge it to borrower

Considerations we've heard/read about are: distance to primary residence, location of the property in comparison to the primary residence (ie, if we live by the beach and we buy a property by the beach, it's likely not our vacation or second home, whereas living inland and buying in downtown or by the beach could be a more likely second or vacation home), and minimum timeframes for owner occupancy (like 14 nights if we eventually choose to do STRs there).We live inland and if this does allow us to buy at a higher price point, we're open to looking in more tourist-y areas of the city.

If this tax is small, you may decide to just eat it.

I currently 100% owner of a prime piece of lakefront property on a very popular lake with very limited lakefront availability. 

However, given the robust rental market conditions, we decided to pivot towards long-term rentals (LTR).

What are best strategies to find sellers who are open to owner financing?

It's been on the market for over 1 year sitting at $1.99m while the owners aren't in any rush to sell due to personal health conditions and squatting tenants.

But make sure to do more research, connect with local agents that know the market, connect with investors who own rental properties in that market, and then decide if that's going to be your main stomping ground. 

In all seriousness, you need to decide how much time you want to spend on a side hustle.