I believe as a part-owner, that it would have to be a tenants-in-common (TIC) set-up, and the name as on title for the relinquished property be one of the TIC parties (name must be identical); this requirement seems to fail to hold in the scenario you described.

The way it's taxed is identical whether it's in an LLC or not.

Normally, I wouldn't consider this at all, but given the tenant's 2 years at the property and their stated desire to purchase in addition to nearly identical existing comps in the past 6 months I'd feel confident in accurately coming up with fair market pricing.

It should also show any security deposit collected, pet fees, cleaning fees etc.Tenant Contact Information: current phone number and email address are needed to be able to communicate with tenants.Tenant(s) Government Issued ID: typically, this will be a driver’s license to prove the identity of the tenant(s).

Control everything, own nothing" is all about insulation from liability.Ideally, BEFORE you begin your acquisitions, you'll set up a trust with someone you trust as the trustee (whose identity will be a matter of public record with respect to the trust) and you as the beneficiary (whose identity is protected).

The answer is easy if you were dealing with two separate property identities or if you were dealing with the same property that you had changed use on.  

with misinformation ;) I thought the topic warranted its own thread: http://www.biggerpockets.com/forums/16-reos/topics/52843-identity-of-interest-transactions-aka-non-arms-length-transactions-Long story short... unless the rules of changed considerably since 2003 (very possible), then it seems that if family member purchases home, then I lease and occupy for 6 months on formal lease, then buy with stated intent of primary residence.... all good. maximum LTV (3.5% down?)

There’s a gazillion posts identical to this already here on the forums with tons of input and feedback.

(Her name isn’t on any of the rental properties which show a tax loss and we don’t use any of that income to live on.)Her best friend has almost the identical loan as a single mother of a college student.

We listed at 200k and accepted an offer for $210 at the time (before it fell apart), there is currently an identical place, a stones throw away, that is listed for $259k..