Applicants have a prior eviction years due to unfortunate circumstance but good household income and noted they are in a better place financially.

Here are the pros as i see it: easy (no purchase necessary, you know the property), likely prop 13 property tax discount, possibly below current rate loan.  

Also assessment never picked up those multiple sales and the parcel was being taxed at 8 acres. 

1-2 months in my marketb (Worcester MA) assuming they pass rental criteria, e.g. no evictions, makes 3x rental income, 650+ credit, good prior landlord references etc. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

You should speak with a CPA and a tax attorney to be safe.Regarding your thoughts about 1/3 equal splits - sounds good until you check out the cost of getting a DSR rehab loan or borrowing hard money.

Assume my marginal income tax bracket is very high, and mortgage rate is 5.25%.

It is not cash flow positive at this time due to high interest rates and property taxes.

How long will they have to cover property taxes etc for the decision they make?

Using an insurance and bank loan product, putting $500,000 each year for 10 years so your family gets $2mm tax free each year forever.