During this 24-month period, the property must be rented to another person at a fair market rental value.After the 24 month period your sibling could convert it into a primary residence.

@Stewart VanValkenburg - any updates?

They will be able to update you on what you need to do to help fire proof your home, and if there are any other options to lower insurance like external fire sprinklers, sealing up, attic vents, defensible space, etc.

There have been a few things that I feel like they could clean up, but it seems like they work hard at updating it to provide a lot of value. 

The only issue I've had is a small period where the laundry pods would always be empty at turnover. 

The modeling of this is actually pretty easy (see link: 42-unit proforma sample), but my model treats the pre-refi loan as I/O, but that can be updated based on your deal.

@Enrique Toledo  Any update on this potential deal and what you wound up doing?

@Ethan Borshansky, There was a brief period of time in the early 2000s when this type of "leasehold exchange" as described above was fairly common. 

Any updates on this post?

That's just life.We had a situation where one tenant had been living at our property for years with several other tenants below them over that time period.