So, they could potentially buy another house later on.

It couldn't hurt to call a couple attorneys right away to see what they say in terms of cost and suggestions for dealing with this quickly.In terms of mitigating any legal issues with your tenant be sure you are documenting every conversation you have had with the HOA in terms of asking them to make the necessary repairs.

This deal taught me the importance of overestimating rehab costs and always having a solid team of professionals on How did you find this deal and how did you negotiate it?

In 2014 it cost me about $42k to do this.  

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

He owns an asset that is worth (low-end) $300k that generates 2300/month (after all costs).

For cash-on-cash evaluation of rental properties, it is critical to identify ALL of  your acquisition costs. 

You can't show the home to potential buyers.

In his words, this is away around the due on sale clause that you can run into in a sub - to transaction.My question - if the seller puts the property in a trust, will this avoid the potential of a due on sale clause?

Properties typically on a land lease in communities like this are more difficult to get financing on - so not only check the values but also time it takes for these properties to sell to understand your holding costs