She wants a house in the city, oh and she wants her 20 something daughter to have access to the unit but not be on the lease.... 

I know who can use it, what I want to know is can a buyer use this as a tenant buyer on a lease option agreement to buy a home while their credit is being repaired for a yr or 2??

In this way you can control the rights to the property and approach tenants to negotiate an LOI and then execute a lease before closing on the property/If area is good generally demand is there unless developers are slamming up so much product there is an oversupply to demand.

One thing I would be curious about and is probably a question for an attorney, but if one passes would their estate take their place on the lease in terms of reaponsibility for the rent?

Is it leased? 

Keep distant .You tell them you’ll honor the lease and you expect them to care for your property .

no it is not illegal, but in most cases the legally binding lease will still be in affect. 

How much cash you can take out will depend on a few things:Income on the property - if the property is not a source of stable cash-flow, that would be the biggest issue.Strength of the leases - who are the retail tenants?

The way I explain is that lower-case-t 'turnkey' just means a property is tenant-ready, doesn't need any work, can be leased and cash flowing today.

Just like a reverse exchange but instead of the QI purchasing the new property and holding it until your construction was complete we lease your property from you on a 30 + year lease and improve the property and 1031 by purchasing the leasehold from us.There was a private letter ruling that indicated this was ok a few years ago but recently some new clarifications seem to put it in jeopardy.