The second question is, I was comparing two paths.

I would probably keep it as a rental for two years and then consider IRS Section 121 Exclusion, but I would probably still keep it as a rental at that point, and if interest rates get below 6% I would consider a cash out refi to buy another investment property.

@Robert Finn What is normally the interest rate the two sides of a seller financing deal agree on?

Closing in two weeks and seller is thrilled.

My recommendation is to choose one of your other two options.  

Looks like a great deal, and a very secure position for your lender.Only need two things to borrow money in Real estate: Note, security instrument. 

If I am interested in a property I call my agent, generally one of two people. 

Hi Everyone,

I bought my last 2 properties while I still had a W2 job. One property is a condo (in CA) that I rent out, and the other property is a house (in NV) that I live in and rent out the other rooms.
I quit...

It was just the two of us but when we rented our house we added the fence with a pool style gate latch. 

The plan to move into the duplex and then out after a year or two, and do that again, is the strategy that my family has used.