Brought the idea to my lawyer and he said, "no sweat!"

That being said, If I had 8 mil in the bank, I would see a lawyer, get a good estate plan set up, sell my rentals, invest my money in low risk funds, live off the dividends, and spend much more time with my family.  

A good lawyer and proper tenant screening should minimize your risk.

I know I'll have to hire a lawyer to draw up the papers, a title company to make sure all of that is in order… but was unsure how to estimate my cost basis for the loan (down payment + closing costs?).  

As for the investors, they are friends, family and acquaintances with RE investing experience so this shouldn't fall into the securities camp, but will have a lawyer to put it all together to be on the safe side.  

I got in contact with one lady who was a relative of the owner and she tells me that the familys Lawyer warned them about the yellowletters and the receiving sudden contact from investors.  

Side question Would you mail or call the lawyer of the estate.?

Need lawyer with experience facilitating subject-to and other creative deal structures in Iowa.  

This is public info available at your local courthouse or from list brokersYou can find divorces and inherited property by taling to lawyers who handle divorce and probate. 

Also, I know the general information that we get from the guru's are just blanket strategies that are more like the cookie cutter approach to business and make for great taking points but, may or may not be applicable to everyone's situation, just like @Linda Weygant said.Working with my accountant and lawyer have been most rewarding and have given me peace and a better outlook on what i need and don't need.