I guess our question is two-fold. 

Really - my question is two fold. 1) What unique contracts/documents do I need to be prepared with to move forward with these types of transactions assuming I am 2) What should I pull in attorneys, title companies, etc.. for? 

@Kris Lindquist, @Linda West, Your question is two fold - What type of property to invest in for passivity. 

My question for all of you is three fold.1.

I am planning for rates to increase incrementally over time, though I admit a 2-yr. 3-fold increase would reduce my cash flow by a lot, which would be too bad (still positive, though). 

Eventually, the business folded and I was without a job.

He will fold and accept your offer in which case You win!

Curious how options like this will find their way into the fold. 

This represents a nine-fold increase over the past 20 years.

Keep it simple (easier said than done)Meaning:a 20k to 40k rehab is 10 times simpler than a 100k rehab (although the budget is only 2.5 times)A 100k rehab will likely yield a much higher return but the complexity will by many folds.