I brought a vision to the home that previous owners couldn't see and therefore sold.

Others have decided not to move at all.

In short, the previous owner made a deal and sold the house while they were still living for monthly cash payments until they died.  

We negotiated a deal with the owner for 20% Equity, we are responsible for infilling the community as well as property management (which we also get paid separately for).

You can't decide which one to choose based on the minimal information you provided.

It is my understanding that the new owner will have the house at the cost basis of my purchase price, for calculating capital gains taxes or depreciation.For gift tax purposes for you - FMV.For capital gain tax purposes for the recipient - your original basis/purchase price 

There are a lot of people that are wanting to owner occupy, which has driven greater demand for these properties. 

Ask to speak with some of their current owners and current/former tenants.

@Arron Paulino Your posts illustrate the challenges of exiting SFH's in markets where the natural buyer is another investor and not home owner.

Business owners won't want to get tied up in litigation and if there is a good chance they will lose, it is easier to simply follow the contract.How would that work with a lower-end tenant?