As for the investors, they are friends, family and acquaintances with RE investing experience so this shouldn't fall into the securities camp, but will have a lawyer to put it all together to be on the safe side.  

Might work for a buy and hold investor, but then that landlord is taking on the risk of a subject to deal for a not-very-good deal.If you're going to try sandwich lease options to owner occupants, spend some time understanding Dodd-Frank and the SAFE act and the implications of that. 

It's most likely against the SAFE Act and would land the lender in tons of trouble. 

Because of the SAFE Act I'm nervous about proceeding too far into the deal.

The more recent EPA lead paint rules require that for pre-1978 construction, that renovations be performed in a lead-safe manner by certified professionals (and even that requirement does not impact owner occupants who are DIY, since the DIY owner occupant is exempt from the requirement).

Lastly and guess what, I also see the IRS going there as playing in concert with the SAFE Act, financed transactions, as well as being watched by the new CFPB bunch.

Stocks are too volatile and aren't as easy or safe to leverage.

As to foreign buyers coming into the market, the reason they come is for safe-haven investments, and are just as likely to bail in case of a downturn (which would be based on the underlying economics) as any other investor

I just want to help keep you safe.  

Cash flowing property can therefore, help you during bad financial times such as during job loss, as you will still have a positive cash flow along with your safe financial future.