Don't forget the cost segregation on the SRT portion to save you taxes.This post does not create a CPA-Client relationship.

Since you are retired, you want to preserve that $200k and make it grow I assume?

If you don't have savings to get more property, the leverage would only increase and the risk so why risk something when you are creating a strong foundation?

The thing is he wants to sell it directly to me (FSBO) without the use of an agent to save on commissions.

It earned about $35K a year, which combined with is retirement and social security benefits, provided him with top shelf top shelf living facilities - assisted living and then memory care.  

His goal is for members to generate a retirement starting in 5 yr's or sooner.

As the owner, you should also be more flexible about how nice the basement is - saving you rehab costs. 

You said the initial applicants didn't have jobs or savings?

., are much better platforms for automated help with bookkeeping to save time and make your life easier.

Quote from @Hamed Rahimi: With so few properties, you'll spend more time learning how to use the tools than you will save from using them.Software is a common question on BiggerPockets.