You need to understand the options OR have someone assisting you who does!

If you find that you aren't up for active real estate investing there are passive options to invest by partnering with an active experienced investor, investing in a syndication as a limited partner, etc. 

One option for funding might be just a personal loan from a local bank or credit union.

If young and willing to take risk, renting is an option.

You might be able to find a duplex in the older areas to house hack if that's an option for you.

The reasons for either option are obvious.

The new appraised value came in at $300,000, which allowed me to take out a loan for $200,000 to repay the seller financing note and get back all of my down payment.

I have also learned through experience not to be the bargain option among comparable homes.

If your friend doesnt have a rental license and everything that goes along with that (lead cert/etc) they are not legally allowed to collect rent and if they go to a judge they will most likely make have to repay any rent collected. 

House hacking a 4-plex is an option if you don’t mind more shared walls and mixed income neighbors.