I have done that model and seen that model over the years.. one guys in INdy called Holdfolio did thisnot sure how it performed but chose the rights assets and proper management and that works.there was a guy in Ohio also that called him self MR> triple net.. he sold you a home then rented it back from you for a set fee then he leased it out in a master lease situation were he took care of everything.my model I used a debt instrument equity share model that basically worked like what your talking about but had a pref return no matter what was happening with the asset.. that put big onus on operator to perform..

Could you move some debt around to payoff some properties to put someone in 1st? 

Do not rely on it for legal advice.

I think a percentage based on the ARV - (Purchase Price + Rehab Costs + Holding Costs + Any Debt Service).

On a good note, I have NO DEBT, NO CREDIT CARDS SINCE I WAS 19 yrs old.

Fourthly, there are lots of ways to structure debt to your advantage.

As a former law enforcement officer there may be something there that will allow you legally to end his lease. 

If everything is done above board and per the Internal Revenue Code and Treasury Regs, isn't it your right to legally mitigate your tax burden?

I spoke with a lawyer who quoted me at $5,000 to create legal documents for this sort of transaction.

Short amort on this one still has a debt service coverage ratio of 1.25 at $1100 per month and jumps to 1.82 at $1600 per month.