You're basically buying an annuity that returns all of your principle plus $100K after expenses + appreciation + tax depreciation value/write-offs.

Treat the lease as a perpetual annuity, and use the present value of all the payments to determine a proper cost.

Through the financial advisor they have learned about stocks, bonds, different 'packaging' for stock and bonds, cds, and annuities.  

I also have all of my 401K and Supplemental Annuity retirement funds on the US Real Estate Index Trust Fund and I am starting to get a tad worry.

It then acts like an annuity. 

Austinif you don't want to be hands on, sell the properties and invest in an annuity. 

If they are in an annuity, that complicates things (high fees and possible penalties).

The only folks  who push or like  whole life/crappy annuities  are  salesman .

So, if you're looking for safety you can invest in safer real estate or bonds/CDs/Annuities, etc. 

A friend and I are considering co-ownership:   she would cash out her annuity for $400K for a 50% share of my property and receive half of the net rental income, minus $200 which I would retain for managing property.