Regardless of the great financing terms, it would be pretty easy to sink that equity into another investment property that beats that 1%-3% annual cash flow return.

When using DSCR financing, even when vesting and borrowing through an LLC or other special purpose entity, you will be required to personally guaranty the loan.

What are the IRS special tax rules for installment sales(seller financing)?

In 2018, along the Texas gulf coast, I purchased a group of (4) homes next to each other via owner finance.

In the current market environment I've been a huge advocate of seller concessions to soften the costs of financing, improve cash flow or limit down payments for other capital improvements (such as upgrades or furniture) but often (especially turn-key vacation rentals) come with strong buyer competition.

How did you finance this deal?

There are some ways to get creative with down payments: seller financing, using an investment loan that allows "gifted funds", etc.Best of luck! 

How can I get financing to repair and renovate it so that I can live there?

As investors, we hear terms like creative financing, partnerships, or other people's money, but it is a struggle to take a theory and put it into practice.

That's the point where you walk and chew gum at the same time (invest and/or pay down debt at your discretion).Lastly, remember that personal finance is as much dopamine, cortisol, and serotonin as it is ROI and calculation.