But if the non-profit was legit and there was a real purpose for the public good, there may be an alternative that would be "authorized". :)

(Probably not an issue unless there is some violation) Don't put a NOO residential 1-4 rental in a commercial loan line of thought, the Act is clear about that, it is not a commercial loan.You mentioned a Trust, in such a case I really suggest you pay attention to the marketablity issues as Trustees/Administrators don't like notes (I know, but I have one using par as the value, some don't) as a Trust is required to give an accounting of the assets in Trust at the market value annually.

For example.....25% down = $12,500[u]Then what sort of cash reserves/assets would a bank want to see in order to secure this loan?

Since the owner is leaving, I'd try to get title with a Sub-2 and then lease it as that will give you the authority to make repairs, improvements, contract labor, address assessments and any legal matter that arise like code violations.

You said something that lets me know that you realize that your tenants are your assets.

Obviously, I want the best tax advantages possible and best asset protection.

I work in Property Management for HOA's, and a situation arose a few months ago that I found quite interesting.An elderly owner of a unit within one of the HOA's we manage, was taken away by authorities because he was not deemed fit to take care of himself (severe dementia).

I think since I am trading that money for an asset that it will be taxed...

I wonder if "old" un-finishable basements are more of a hindrance than an asset.

Over-all the percentage I pay for PM & repairs &maintenance are lower than what I paid for single family homes.In my opinion and based on experience, multi-unit apartments are better buy-and-hold assets vs.