I look at that and I feel like I am doing something wrong. 

All other nails are wrong, so I never use those other nails.

Is he barking up the wrong tree, lol?

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Get the timing wrong and you are looking at a downturn and loss of capital, at least on paper.Adding value is key to giving yourself the best possible opportunity of your investment making you money.

@Stanley Bronstein, My myth is based on 40 years investing my own money, NOT getting paid whether I’m right or wrong.  

Cities are not wrong to be worried about this.

And if things were to go wrong, it would be easier to bail out or at least not completely lose my shirt over it

I think there is absolutely nothing wrong with this so long as they are transparent about it. 

Seller has transferred ownership but still on the hook for the mortgage so what can go wrong with that scenario ??