@Jacob BrattainWhile the idea of giving the homes to the renters sounds logical turning them into owners at lot lease rates, the problem  is that you just took renters and calling them owners.  

Working with family is tough, however, if everyone is logical and you make sure to disclose all aspects of the deal and make sure everything is very well documented and spelled out in contracts, then it is very possible. 

Thanks,  Sheila GSolid logic, I just ran it by my mortgage broker to verify.

Good luck.On your point 5, it is actually logical when you think about it.

What's the logic people use?

I was just curious if holding off for equity purposes was a possible plan but I agree with you in the logic that it is a negative cash flow, so why keep it.

My guess is that if they cold-approached you at $500k you could get it for $400k.But hey, I'm 2 glasses of wine down so you should probably review my logic with a critical eye :)

There is a simple and logical reason behind this.

Seems like a logical approach.  

He knows the contractors, has the lawyer and title company relationships.Just not sure what do path to go right now...the logical side of my brain says to do another with my friend to continue to learn.