Way too much gambling/luck aspect to it and even when you win for the year the tax rate is awful compared to long term gains. 

I learned to recognize tenants who will likely stay. 

However, we also recognize that due to the proliferation of home surveillance cameras and drones, there is some uncertainty about what surveillance activities may be maintained without resulting in an invasion of privacy of another person.

California does not recognize series LLCs.You also want to look at whether a pass-through entity helps your bottom line and your taxes.

We recognize not everyone will want to hire a real estate agent, so our offering would provide people will all of the same knowledge and resources for a smaller fee.

Just a quick clarification FHA and Fannie are two separate entities, which your post seems to recognize.

Recognizing that I'll need to discuss options with an attorney, I'd like to have a few alternatives to bring up and talk through with them.

my recommendation is you negotiate the best terms you can get but recognize that the tenants have the upper hand.

At a general level, capital gains taxes are recognized when the income from sale is received -- so a seller pays a pro rata share of capital gains on the purchase price as payments on the note are made. 

If I wanted to do high stakes gambling I would go to Vegas and get free drinks not pay so gurus to blow smoke.