I had someone tell me my business model was un-ethical because buying foreclosures kicks people out of their homes....

One of the things we do is keep my wife in a late-model SUV.

Expected rent is approx $2500/month.Both are the same model- 5 bedrooms (4 up, 1 down), 2 1/2 baths (2 up, 1/2 down) and both are in very good shape, move in ready, etc.Differences:House 1:Finished Basement, but no bathroom in basement.Gas fireplace- selling point in COPaid-for solar installation (could save renter approx $50-$100/month on electricity)Small backyard with retaining wall and trees that make it look/feel even smaller (bad for small kids and dogs).Residential street but higher traffic since it's a "feeder" to the neighborhood.House 2:Better curb appeal from street Less traffic on street.Back yard is bigger, but feels a lot bigger due to layout (better for young kids and dogs (Everyone in CO has a dog)).VERY close to excellent Elementary schoolNo fireplace.Unfinished basement.My wife and I think House 1 would be better for families with teenagers (can go to basement) and House 2 would be better for families with small kids (can play in back yard).Any advice appreciated- thanks!

I would suggest that you thoroughly think through your business model. 

The problem with that model is that your family member takes 100% of the risk and could simply buy the property themselves.

This is in many ways similar to the Blackstone / Carlyle model but applied on a single market (where they are not present).

I would have to say it depends on your business model and what you are looking for.

Some people think that's a good business model, but I and many others do not & we just charge at-cost. 

There's a niche business model called social entrepreneurism that's been quite successful.

At this time, Conrad Hilton began the internationalization of hotel brands, and in doing so had to muzzle the grand hotel model to conform to growth in other territories.