It's also an easier way for me to repay my investor as it wouldn't require taking out a mortgage after a 6-12 month seasoning period.

Second, the two PLRs had a specific fact pattern that generally requires some restructuring of the ownership of the property that you would want to build on, which may be deemed as a step transaction unless you have some seasoning (time).

If they are doing a rate/term refi there usually isn't any seasoning needed.  

Most banks, or other traditional lenders, will require between 6-12 months of seasoning before a refi.On the other hand, non-traditional or private sources, like mine, may not require any seasoning at all.  

Average rents for similar size are $1400-$1500, there are a lot of odd balls asking for $2500 for some reason, but I think those are mostly for seasonal tenants and the houses are furnished...

As far as my understanding from what you posted, I don't see what is the asking price by the owner (unless they are waiting for you to make an offer).You really have to make sure that you have enough profit margin/reserves in order to make it worthwhile for yourself while being more attractive than all cash offer.In regards to owner financing by yourself, you need to make sure you offer better rates than hard money lender, which you are with 8%, you can even go a bit higher.Your bullet points are good to convince the owner to go with owner financing, just make sure the finance is not too tight on your end to make a profit

What is the seasoning on the note (how many payments have been made)?

I just wanted to know if all the seasoned investors would think of this as a viable strategy.

Should I utilize this option for a cash deal long term hold, or bite the bullet on tight margins utilizing a bank loan until I can refi lower down the road? 

I'm preferably looking for a seasoned investor who's had success in one or both of these endeavors.