I would much appreciate any advise on how I could pull this deal off via a Warranty or Quit Claim deed while also making it beneficial for him and his family.

A lease can be modified by the mutual agreement of the two parties.

We currently have our auto (in California) and our 2 Texas rentals with Liberty Mutual.

We currently have our auto (in California) and our 2 Texas rentals with Liberty Mutual.

Otherwise it is almost always more beneficial to get financing for each house individually due to better/cheaper terms.  

The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions; andBoth are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (checkbook IRA) must be used. 

@Mary Joe Not meaning to be a smart ***, but if you are looking for passive, low return, risk averse, long term investments, what not just invest in a few good income (dividend paying) blue chip mutual funds?

At minimum, an LLC with a basic operating agreement needs to be in place along with lease terms defined + mutually agreed upon up-front.  

There are plenty of these.For out of state investors it's very beneficial to buy condos because the exterior Cap exp included in HOA (roof, driveways, sometimes even A/C units outside the wall). 

I personaly am closing currently 2 to 5 a month and find it very satisfying and empowering not to mention financially beneficial to my students as well.