Checkout TLDR below.I recently came across this article where I read about California's proposed subsidy for housing purchase. https://www.businessinsider.com/california-dream-for-all-program-senate-democrats-new-home-costs-2021-6.

If you are wondering what you are paying for you need to just read the proposal.

Of course not the 100 hour proposal/contract that I prepare for remodels or builds, but plenty good enough for them to wrap their heads around a budget.

The DSCR loan only requires that the properties rent for equal to or up to 15-20% more than the PITI mortgage payment on the proposed loan.

I'd just like to clarify that 'chopping block' is a proposal to cap deferred GAIN at $500k, like the 121 forgiveness of up to $500k of gain from the sale of a primary res. 

Further it is very likely that the 39% rate proposed will decrease to something more like 25% or 28%.

I think that what you are proposing would be mortgage fraud. 

But I think it should include anyone that provides housing to the qualifying tenants under this rule.https://www.accountingtoday.com/news/wyden-proposes-bill-to-offer-tax-credits-to-combat-homelessness?

Lots of details here to consider so when you say how would I draft this up - there is a lot to consider but my thoughts:Rent = 1200/month3 yr option to purchase = $240,000not sure what state you are in but propose to handle everything (maintenance, repairs, etc and if that is not legal/possible you could do a Land contract or contract for deed with a  minor risk since he has an underlying mortgage).feel free to reach out and schedule a  call. seems like you have a fascinating one. 

I just whipped up this proposal and wanted to see how it "hits you."