Your proposal isn't a lease option...it's a Land Contract Purchase.Second, using specific numbers, can you explain how you think this is doing any of the following:1 - Helping his CF problems2 - Making you any money now...and in the future3 - How you plan on financing this if you're buying it at $41k if you need to come up with 20% for traditional financing...that's $8200 in cash.4 - If you are doing a Land Contract to buy it, with payments from you around $450/m, how is the seller going to cover his current $500/m payments...and taxes and insurance?

What, you would propose waiting until the lender forecloses and then sells it for more later?

What you're proposing is to sell investment property but purchase membership interest in an entity that owns investment real estate - not actual real estate.But .

So I think it's an idea worth considering, to contact them about what lease they recommend (or at least have them look over your proposed lease) before you have an eviction underway.

On proposals I have seen cost seg providers show the tax benefit as if you are in the 37% bracket, and with the assumption that you can take the entire loss. 

The original proposal wanted to limit landlords from viewing a tenant's income and establish legal counsel for tenants, however KC Tenants had to concede those two issues.

Unlike a like kind exchange which is completely on you for the timing, and if, the gain is recognized. 4) There is currently a sunset about 30 years down the road when QOZ funds need to be closed - unless something changes legislatively, I imagine a sudden sale of a high number of QOZ projects could create excess supply, and a problem with selling prices, potentially resulting in a significant reduction in the amount of tax free gain benefit.It is certainly a huge potential tax benefit, and I know it will work out well for a number of people.

I don't still have a copy, but I went door to door, handed them a new proposed rental agreement, a top sheet with our contact info, and verbal reassurance as much as we could offer. 

In the original legislation 1400Z0-2 it defines an opportunity zone fund as: The term "qualified opportunity fund" means any investment vehicle which is organized as acorporation or a partnership for the purpose of investing in qualified opportunity zone propertyThe later regulations clarified that an LLC would count as a partnership when setting up a an OZ fund, but under the IRS rules for an LLC to qualify as a partnership it has to be a multi-member LLC.

If this proposal is allowed to continue as proposed you will no longer be able to take the following information into consideration when screening tenants.