you have to rent for 6-7 years to even out the taxes paid when you go to sell (doesn't really account for increased rental rate over the years), but you'd STILL have the appreciation profit on the home, and you could have also taken a cash out refi on the home at some point if needed to put into other profit-producing investments (I do realize the refi impacts the overall model of course). 

You can't just be new and say I can do everything because it's not just about producing leads, you still have to know how to close them and have the resources to do it.

Maybe kids thought it was too much trouble, but you reno nicely and make it livable, all of the sudden, probate appears, they gain title and redeem with you....so don't do more than $20,000 in reno or you have no profit.Plan #4...can't really owner finance as you can't really sell it, because what happens if previous owner redeems....now you are in a world of hurt, because you have someone in the house that they thought they bought that now has to leave.   

@Jung Kim, I am having a bit of trouble following the logic here, but I there there are some misalignment of analysis.First of all your analysis isn't adding in the $100k initial equity in the deal.  

This situation doesn't seem like it would produce good, long term tenants.

It doesn't seem to have the ability to produce a worthwhile cash flow to invest in, even if you rent out all of the home's bedrooms and the casita.

So that might be the avenue that the sons get to that shows them they are not in trouble but have a big win fall coming. now we have helped a few times like this were the kids were addicts and could not do anything and we were able to petition the court to get standing and help these folks through it.. but we had to pay our attorney and then the resale has to be approved by the judge there is some delta to be had.. but it certainly not going to be as described above which any judge would look at as unconscionable profit. 

Return on Investment is 9.6 yrsIf I try to fix it up rear building,  which scares me because I'm having trouble to getting contractors there and i will waste time and money and project won't get done. 

I thought about going the route of building my own team of maintenance people but I am having trouble in that department. 

The problem is that he is not a US citizen or even lives in the US and I'm having trouble finding commercial lenders that would lend to us.