I can certainly see the value in that model, especially in urban areas like NYC (I got a LOT of value out of a day-use suitcase-storage place I used once!).  

I would take that $40k and identify an area that is up and coming, near a college, university or employment draw, and purchase a small condo as a rental. 1 Bedrooms or studios make excellent rental investments. 

They will leave the car in their impound lot until the tow charge plus storage fee is paid.

They may be able to help get you documentation to show not only your current ownership, but details on previous owners to show he never owned it.- Get copies of the checks from the two rent payments he made.

All my previous investing has been with stocks. 

I agree with the previous poster.Also, to alleviate this concern with his next tenant, I suggest your FiL contract to begin service with the garbage collection company, increase the rent by the amount of that cost, and then market the house as "comes with garbage collection!"

If I'm wrong and you are putting a larger deal together (commercial MF, self-storage, mobile home parks, retail space, etc.) or you still want to look into syndicating regardless, @KimLisa Taylor may be able to help you out.

Previous time in rental has been my best predictor of a good tenant in my "C" property. 

Oh, and yes, this is assuming you do have previous experience placing tenants in your pre-PM life.Let's hear it!

For some reason they filled out the application so that their current address (As far as I can figure) is listed under previous addresses and the current address field is blank.