Please help me to identify the risks in this investment

[Account Closed]

Hello and thank you in advance for any risks or areas of concern that you can point out in this investment opportunity.  I am worried this may be too good to be true (or I am misunderstanding something).

Opportunity:

I am an out of state investor, offered an opportunity to purchase a 4 unit property.  The property is rented to a sober living facility.  I am told the facility is profitable, has multiple locations and receives government money.  The property I am considering purchase is an all girls home in which residents are expected to be employed, have a curfew and not be allowed guests.

The property owner signed a 5yr lease with the tenant as of 3 months ago.  The rent is at an attractive level to current market.  There are no rent increases built into the next 5 years.  The tenant is responsible for all mantainence, large and small, including repairs, appliances etc.

My thoughts:

Being an out of state investor, I like that the tenant is responsible for all costs.  I hope that this is a property that I can easily manage from out of state, thus increasing my returns from not hiring a management company.

I am VERY comfortable with the current cash on cash returns.  If I am correct that I will not have to pay for property mgmt or matainence, then I would estimate this investment is offering close to 30% cash on cash returns after paying for mortgage, insurance and property taxes.  This compares to my typical duplex investment in the area with 10% estimated cash-on-cash returns.

My concerns:

1.  What risks am I missing here?  I realize that the business could go bankrupt, that the business owner is incentivized to delay repair and mantainence work, and that the tenants could be hard on the property.  That being said, I carry much of this type of risk as an out of state investor with my normal low income tenants and semi accountable management companies.

2. Should I be concerned about this? The property looks like it was sold from a private investor to ABC LLC in 2011 at 300k. ABC LLC then sold it to XYZ LLC in 2013 at 193k. ABC LLC is holding the note on the property. XYZ LLC claims they are selling the property at a loss at a list price of 290k, saying they want to take equity out of the property to payoff personal debt. Does this seem fishy to you? Why would there be a sale in 2013 for 193k but the owner is claiming to own the property at a price of 300k?

Thanks.