If you run a lending as business, your interest will convert to ordinary income and could be passive based on your involvement.

A lot of people under-estimate how much work is involved with owning real estate, especially if you go the route of self-managing.

As a bank will be involved I am trying to think of the best way to structure this. 

City gets involved. 

When QIs get involved There is generally already a realtor or two involved. 

If none of those scenarios apply and the building is in fact grossing ~$10,750/m reach out because the building is not in a $115K door neighborhood in which case I would be interested and can find a way to involve you and make sure you're compensated :)

These programs very commonly involve restrictions and conditions on use, refinance, or resale of the property. 

It’s crucial to negotiate terms that benefit both parties, involve a trusted attorney and title company, and conduct thorough inspections and market research to ensure a solid deal.Good luck!

There are small communities in Texas where the 3 or 4 small brokerages in town just keep a list between themselves or have created a Facebook group among themselves to promote their listings.I have run across a few Brokers over the years that just worked with buyers in the purchase of HUD/VA foreclosures and were not Realtors and therefore not members of a Board/MLSHowever, in any MLS that I have been involved with if the Broker is a member of the MLS, all of their agents are also required to be members. 

The settl4ement was private, but I bet it was at least $400k knowing the attorney's involved, maybe more.