I make money during  the length of the loan. 

The lease terms are typically about 2x market rent for an ordinary SFH and the leases are typically 3-5 years in length so they provide much more stability and less vacancy overall.

But there are a lot of accountants who say that as long as it is a business like arms-length transaction that it is fine.Your safest route is to use a DST or two if needed to give you some wiggle room. 

See if they know this Tenant, see what is reasonable in this market for their use and the length of the lease. 

Then I would get some quotes and start budgeting now ... depending on what the municipality charges for connection, the length of the new run and the digging/landscaping involved in disconnecting the old, you could be looking at 3 - 10K.In the interim, be nice to your neighbour and perhaps higher a roto-router service once - or twice - per year to hit the existing line and keep it clear.

The benefit we receive from the length of time a SEC 8 tenant stays in a property compared to a non-SEC 8 tenant, far exceeds the cost of repairs for the few we pay for repairs for that don’t get recouped.

The business operates in the taxable realm, but you can capitalize the business using retirement funds without penalty and can be involved in the operations of the business - including drawing a salary.I bring the ROBS plan up more to cross-reference some of what you may be reading on the internet and to draw a distinction between that option and the arms-length, tax-sheltered nature of a self directed IRA.  

I know this isn't a short sale, but worried that in a short sale, I thought there was some arms length rule and  do not know if it applies here ?

Sorry for the length, and I am truly appreciative of any and all advice!!

Ask how long they have been in business, the number of properties they manage, the level of customer service you will receive, and the average length of stay with their residents.