It's now not a secret, and actually fairly expensive due to all of these benefits. 

Nope Its super hard to shut down a "Sober Living Home" due to ADA and fair Housing.  

So, I would start there and negotiate something fair.

Well to be fair, when I was starting I did a lot of 'unconventional' things to be able to buy and build/grow.  

The disadvantage I can think of is that, the tenants will treat renting your house as renting an apartment, and require more maintains like clogged toilets.

Death of Person A (11/2020):• Fair Market Value at Death: $180,000• Step-up in Basis for Person C upon death of Person A:• 33.33% of $180,000 = $60,000• New Basis for Person C: $26,667 (original basis) + $60,000 (step-up) = $86,667 for 66.66% ownership.4.

How I have structured these in the past is if he is coming with all of the capital and you are handling everything else than a 50/50 split is fair.

Quote from @Dave Hart: Fair warning BP friends.

I will be surprised if we have tenant by Dec 1 and fairly happy if by Jan 1.  

This will make investing in midwest fairly simple.