The problem is the rate increase being described is 100% increase going from currently 4% to 8% in 2020.  

Ok so this is really a condo project and your TIC describes a single condo or Flat correct ?

I own one property just like the one you described.  

Describe the project, why it is a great project, the numbers and how their money is protected. 

Yes, the terms will be slightly less favorable than residential mortgages (higher interest rates, shorter amortization) but it will avoid the kind of financial acrobatics you are describing.

I've noticed the folks "eager" to move (the ones that ask for an application, return it and, so far, have been denied due to bad credit, history of previous evictions, not meeting the income requirements) have, invariably, been living with relatives prior to looking.In other words, you may find you are being contacted this time of year by a larger percentage of what may be described as the "desperate" crowd who are living with relatives because no one else will take them.  

I'm just throwing this out there so you can look around and see what others are doing in your market.Personally, I would be more inclined to keep a property you described as a rental.  

—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate.

Seller financing is when you buy a house and the owner acts as the lender instead of you getting a loan at a bank.Rent to own is what you described.

There can be condo style splits ( you own your lot and pay HOA) , there can be co ops ( I believe thats how resident owned communities are structured) and I have seen it to where it maps out the home as you described (i.e. mapped per lot with home info ) but thats just related to how the county is taxing the homes but the park can still have one owner.