As for what you said about buyers "catching the fever" and taking the "rents will keep rising like crazy approach;" if we are not to use historical trends and data to assist in formulating our future projections which are ultimately used in making our investment decisions, how is it that you propose we evaluate potential deals?  

This was his proposal

Anyway, I proposed that I buy the house quickly, and that we can have a local title agent or lawyer draft up the terms, and do the closing in a "proper" fashion, which tells the owner that I am doing this in a legal venue and with appropriate players.  

@Jacqueline PelzerWhat you propose as joint ventures between your IRA and yourself is doable, but does create risk exposure.  

The link Michael posted above is a great tool, but just be aware that they show the proposed flood zones that are not in effect yet. 

After seeing all of the sub-1% rule rentals though, we wonder if a tiny condo in the $150,000 - $200,000 range makes sense with the expectation that some of the housing permits that have been proposed for 2017 and beyond pan out. 

They leave you with this gem to help figure out the taxes on your future property: "While we would like to provide a tax estimate that is meaningful, future taxes can no longer be calculated due to a multitude of variables, many of which will not be determined until Notices of Proposed Taxes are mailed."

He will refi out at 85%, and now I just need to propose this to the bank.... and get it accepted. 

Using the "if a mortgage lender can do it without it being unlawful housing discrimination, a landlord can probably do it too" metric, yes you can probably view the proposed tenant package more favorably if it shows more income than some other proposed tenant package. 

One rose to the top, she answered my questions, made herself available, was transparent and came to our meeting with a proposal, comps, etc.