I am looking into that area as well because my son is moving there and I would like to have my own place to stay when I am there, especially if I get grandchildren any time soon.

I'm looking at different ways to turn my mom's home into assisted living home?

For some reason, if the current owner applies for the rental license, they don't get flagged while the new buyer has a higher likely hood of running into trouble. 

So looking into single family homes in the $400K range.

If you're priced out of your current market, I would definitely look into other markets where you can find great macroeconomics, positive cash flow, and amazing appreciation potential.

So, yeah, I get it, it's been a good setup for both parties.That being said, (and perhaps this is my naivete coming into this new space) the fact that after all this time they decided to outsource the lease renewal negotiations feels like a "them" issue and like a one-off fee.  

It's possible the first letter or summons will slap your tenant quickly into compliance, or you may go all the way to court/judgement/sheriff removal. 

Many operators and their investors are now finding out when the market stops going up, yoy better know what you are doing or you can lose your shirt.So I believe some personal practical experience owning and operating rental property is a good idea before moving to other assets.People can get into syndication in two primary ways:1) Find a deal or 2) Raise capital.Find an experienced operator to team with and let him order teach you the business.

or rent it out and downsize my life to save more.If I rent it out my property taxes will go up to 6% since it will turn into an investment property. 

Most that fell into the last group are no longer "real estate investors" or they chose to purchase at retail prices from the MLS.