Way to pay it forward from a guy who taken some tough knocks and knows the game.....I've been doing this too, and I would advise you to choose your mentorees carefully...some people will not do the work and expect you to give them everything.

Most people wont get to this step, and if they lie you can catch it during screen (which the tenant pays for)4.)

Loophole is a term politicians gave for tax laws they do not like. 

That house is an asset that perhaps could have or should have been sold to pay that debt and filing a potentially false deed after they pass away could be a way of avoiding payment of that debt.

In the ideal scenario, we picture keeping the property as a cash flowing asset forever and letting our kids deal with it after we die.BUT, if that doesn't happen, and we decide to sell in 7 years or 10 years, I'm going to kick myself for losing out on the capital gains tax exclusion of $500k.  

If you were to pay your investors $8,000 in preferred rate of return of 8% on their $100k capital investment, the second year the capital account amount would be brought down to $92,000 right?

(In case you didn't know, the Housing Authority typically won't start paying rent until the property has passed its initial inspection.)Good luck.

They were supposed to pay the rent jointly, as stated in the lease agreement.

Do the math, if you pay for example, 200k, and the reno is only 50k.

I stay away from flood insurance, but eventually, I feel everyone will pay flood insurance in FL.