Ultimately I would be taking a bigger risk by structuring it this way. 

It has new windows, but otherwise from the outside, needs a new roof, new stucko, paint, pointing, and other obvious structural work that an old building would need.

That depends... and I think much of their structure is constantly evolving as securities regulation loosens.

How should the master lease be structured?

Joe - how do you structure your partnership deals with credit, capital, and management?

How would you structure this agreement?

There's no structure focused on the student's success.The fault doesn't lie solely on the mentor's side, of course.

That said, as in a due on sale clause, you may not be able to seller finance to a subsequent buyer depending on how you structured your original purchase contract, but otherwise it should be fine I think.

With an equity partnership we would traditionally structure it with three fee components.Acquisition fee- for your work upfront (1-3% of total deal paid to you closing)Asset Mngmt fee- for your day to day work. (1-2% of gross rents collected paid to you monthly)Cash flow- split to you and the investor. 

"my community," fannie mae program.The problem is most lenders are not creative enough to figure out how to structure a deal to yield the most effective ROI but there literally many more ways to structure the deal to achieve the most effective results.