The participation must be regular, continuous, and substantial as defined by the IRS.

Are there many REITs that currently regularly engage in this type of feeder based structuring for a investors?

By all means give them a note on how to use all of the appliances (eg clean out the lint trap on the drier after each load, do not use dish soap in a dishwasher, change the furnace filter regularly, etc).

Your best/safest bet would be a regular lease combined with an option to purchase.

Here is a presentation I made describing the benefit of doing such vs a regular investment.

I'm just not seeing any strategy that can offset to any significant degree, the depreciating nature of either asset.  

#10)  The birds provide a free, natural alarm clock!

A rent heavy market, with a shortage, I am receiving regular requests for rentals in these markets.  

It has solar power, a compost toilet, and other things of that nature to be self-sustaining.

They can't assess all the subjective data like overall layout, view from the living room window, the dogs next door that bark all day, the width of doorways, size of individual rooms, quality of kitchen cabinets and appliances, etc.The best thing to do is study your market regularly.