Personally, I wouldn’t invest in a market where appreciation averages only 2%.

We're exploring creative ways to provide him with the cash needed for the down payment while avoiding triggering a taxable event.One strategy we're considering is purchasing his future primary residence ourselves, making the mortgage payments, and then, once we've built enough equity—comparable to the appraised value of his rental properties—transferring the title to him as a form of exchange.What are your thoughts on this approach?

There are a lot of affordable properties in Knoxville, but the growth isn't terribly vibrant and the deman isn't what you'd expect for a city of that size and that close to the Smokies - you're mostly looking at college rentals for the meat of the move season, and the SF market, while it exists, doesn't really compare to Chattanooga. 

@Dennis Bragg, how did you factor improvements and market appreciation into the buy-back price?

Many months of costly vacancy, local market rent & resale deteriation, special assessments, property taxes and maintanance fees suggest a quick sale would have been the wise thing to do 2 years ago.

After sending out thousands and not getting responses, or at least not good ones, I stopped trying this marketing method.

In our market (New Orleans) cemetery tours are very popular. 

What markets are you investing in?  

Study the market.

Study the market.