There's too many risks, including illegal/illicit use, including copyrighted material and FIOS as you can see is taking harsh measures (slow spleed, freeze account for days, freeze account indefinitely after 6+ file transfers, even if same title).Additionally, there are the complaints that the wifi signal is poor etc in a certain room (which is pretty much inevitable).. and even when the tenant defaults paying rent altogether and/or abuses it, there might be the future claim of that 'utility' provided prematurely being cut off, even if its complimentary?

My PITI payment was $180/month, so if something horrible happened where I couldn't rent and I couldn't repair, I could sit on it indefinitely. 

Whereas usually rental income should be consistent indefinitely, because people always need a place to live.

With 80k You could leverage a couple investment properties there and have some decent cashflow coming in. Definitely

You may keep doing it and postpone indefinitely, but you'll never AVOID the tax if you eventually sell without a 1031 exchange.

Other than bringing the deal to somebody’s attention why would someone want to get a loan on this property and have to keep you around as part of the deal for the indefinite future?

I've heard of plenty of horror stories of tenants just squating indefinitely and the landlord having to now work around the system to get them out..Some sort of justice must be found in the middle to help both tenants and landlords equally.

If you use her car make sure it is worth something and the debt doesn't exceed the quick sale price.

Thanks for the response Charles.I do not plan to partner or sell, rather hold these rental properties on my own for an indefinite period.

Dodd-Frank, I don't believe uses the words "lease-option financing" what you will find is that the DF encompasses the SAFE Act and establishes authority over any consumer RE transaction that is designed, intended to or facilitates the transfer of title in a 1-4 family dwelling by doing so.You will be very busy looking up the statutes that have been modified, adopted or the recension of regulations, going back to 1938 that I noticed.Much of this stuff lies in definitions, you can't just read the word "make" or "makes" or "maker" of a financial obligation and assume it means the same thing as a car maker or one who makes cookies, the English word has different applications.