The 5% down programs help get them into the deal but they need a plan for what comes next. 

You must occupy the residence within 60 days of closing and live in it as your primary residence for 12 months before renting out other units.Do this several times and you will have 3-4 performing (hopefully) 4 plexs (or tri or duplex) and then you can look at doing STRs.It would create a great base for you to work towards early retirement. 

I'm tired of dealing with the tenant and just want to move on.  

How did you finance this deal?

It can be a nightmare dealing with occupants that don't get along and want the manager to play "cop".

Thank for the help instead of holding them is there a way to market these to a niche buyer that is looking for some rental income, would the numbers work better as a true development and sale deal?

If you can be close to the 1% rule you're probably safe, but still run your numbers to be safe. 

We've done a lot of deals in the Carolinas.

Can someone explain to me so I can explain to him how the deal would align with his stated goal of not paying 300k gains all at once?

What was the most efficient way to dealing with the transition?