I am going to look into this alternative to the traditional ways of getting motivated seller leads!

This might be an alternative that solves your immediate problem and also provides a much, much needed solution in the community.

Alternatively, what's the best way for my friend to get their funds back without any tax implications (if any) for him and business?

Take a look at the alternative.....if there was NO incentive for a property management company to get a renewal because they do not charge a renewal fee.....why are they going to seek one?  

Alternatively, if you know of a mentor you could recommend, I would greatly appreciate it.

Alternatively, you could try cash for keys.

Alternatively, you may explore the stability of long-term rentals or the convenience of Real Estate Investment Trusts (REITs) for a more hands-off investment approach.

Alternatively, many owners are currently motivated and might offer competitive financing.These would not be value add properties, which do notwant, but those in good maintainable shape.

But if I want to invest money providing better terms than those options, he's happy to take the better terms.I don't want to ask for the terms of his best alternative, and even if I did, I'd likely still post this to verify.

Search for regions that are seeing increases in employment, population, and economic prosperity.Discover your alternatives for financing multifamily real estate.