@David VanWinkle I would use the month to month arrangement to your advantage for a little bit when you first take ownership.

If your HVAC guy doesn't have your master key you need to arrange for it between the two of you.  

I like the idea of getting a premium while my property is used to help those in need and freeing myself from my current roles as property manager and referee.This potential with this model intrigues me; My question for the community is: how could I structure a legal agreement that would protect me from the potential downsides of this kind of arrangement? 

Seller financing is a mutually beneficial arrangement if you do it correctly.

Are there any verbal agreements or arrangements between the current Landlord and Tenant?

Also, were you doing a live-in rehab or had you secured living arrangements outside of the property until it was fully move in ready?

@Jon Holdman: That's a fine arrangement.

Do returns on those types of arrangements typically beat the stock market?

Generally the advantage is that you can 1031 a smaller amount and switch to passively investing, at the expense of (again, generally) more modest returns.Investors can also 1031 Exchange into a syndication through a Tenants In Common arrangement with the operator, but the minimums to do so are typically much higher than DSTs.

What is the typical arrangement for distribution of cash flow, profit sharing, and sales proceeds?