I'd echo the advice already given.Start hanging out with the local investor community and start talking with RE brokers and lenders who have experience and expertise in the strategy you land on.In your case, I'd take a serious look at househacking.

On your taxes do you write off the MI currently? 

Due to their liability protection and tax advantages.

Therefore, there is no real tax benefit to having an LLC.You may also want to have a discussion with your attorney on the real level of protection you would receive from this strategy in your state. 

These type of people always have a story about the job they're about to get, tax refund coming soon, inheritance, etc. and when you drill down you find out they lack basic things (ID) that would enable them to follow through on their plans.

Tax RepercussionsKeep in mind that every real estate market is different, so you need to adjust your strategy to the particular circumstances of the region you are investing in.

It would also essentially wipe out $400/month rental income and you'd lose the additional benefits like potential appreciate, tax advantages, etc.If you planned to buy another rental, that would be a different conversation because there might be upside there.

@Dave RavHow do you know what the correct specs are or what you need without being in the field of expertise?

Seller financing is a great way for the seller to avoid a lump sum capital gains tax, and still make steady/expected income on a property even after they sell it. 

They would likely lose any homestead tax benefits and possibly lose other things as well.