Per federal Fair Housing guidelines, you cannot have rules that are different for children than for adults - that would be discrimination.  

This family member would like to pass the house to a specific individual, and not split it up amongst many children and grandchildren. 

The rungs are about 6 inches apart, which we feel is dangerous for small children. 

Unfortunately, yet fortunately I am married and have 2 small children.  

He specifically  mentioned Chinese buyers in areas their children are attending college.  

The owner is his mother and the children are preparing to place her in a nursing home.

@Kathleen Wilcox be really cautious about offering a 5 year lease with option, Due on Sale Clause IssuesHere are the exemptionsd) Exemption of specified transfers or dispositions With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—(1) the creation of a lien or other encumbrance subordinate to the lender’s security instrument which does not relate to a transfer of rights of occupancy in the property;(2) the creation of a purchase money security interest for household appliances;(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety;(4) the granting of a leasehold interest of three years or less not containing an option to purchase;(5) a transfer to a relative resulting from the death of a borrower;(6) a transfer where the spouse or children of the borrower become an owner of the property;(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property;(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property; or(9) any other transfer or disposition described in regulations prescribed by the Federal Home Loan Bank Board.

He is retired military that wants to move back to Panama with his wife since his children are adults and on their own now and he just wants out of the property and out of the country with cash to move.

I'm currently doing interior design/furniture rehabbing, but am getting ready to pull the trigger on my first flip.

My investors are happy, I'm happy AND the new buyers get a great deal...never saw the need to move furniture in and out of a newly finished space - let the buyers ding their own walls.