While it may seem like a good deal on paper, my first impression based on your explanation of the situation is that the seller is hiding something.

@Yifat Gat assuming the goal is not to hide marital assets, putting a property into a trust or LLC won't really reduce your involvement unless you're also hiring management, which you could do without an LLC or trust.

If you go with conventional door locks, hide one in an inconspicuous area so that when the tenants lock themselves out at 2:15 in the morning you don't have to make a trip to let them in. 

People may put a wall around them to hide them, but the area itself is not finished.

Maybe use this strategy to see if they are trying to hide something behind scenes (maybe running late in their mortgage payments and getting close to pre-forclosure) If the numbers don't work out for you by letting them stay in the house while they find a new place then is like renting to tenants at a price that doesn't fit your needs, which I don't think is what we look for.

Trying to characterize a loan as a gift, in order to hide it from a lender, doesn't line up with "your credibility being paramount...".

I'm not a lawyer, but my understanding is your only true worry is if you intentionally hide or cover up something significant.

It's sealed up tight that's why I think he's hiding a lot!!

In a portfolio, there has to be a blend of all of the above, but the answer to the above question hides in it a lot of what's not said often on BP :)Good Luck!

It sells a lot of CD's and courses,  but only hides the beneficiary - until further research is done - and yes - beneficiaries will be found if needed by the courts - and subpoened - even out of state.