If the owner is deceased, I don't think the family is responsible for the difference if the value of the home went down (which I'd find hard to believe given current home prices and length of time this person probably had the reverse mortgage).Put in what you think is a fair offer and then it is up to the sellers to decide if they want to accept it or not.

You have to get court approval to sell or have you assume Any non arms length transaction (sold to family) is going to be disputed.

Little more difficult if lease lengths are shorter with high turnover finding the right tenant. 

I've read at great length of lawyers and CPAs recommending one account through the management LLC, since the series does nothing but 'hold' the properties.

It depends...We need to consider the length of time it took to receive that $500K.That's where the IRR, or internal rate of return, comes in.I bet you would be less excited if it took 30 years to earn that $500k vs. if it took 7 years.// Simply stated: IRR is the annualized, time-weighted return of your investment.Real estate investors can use the IRR to compare different investment opportunities.

The truth is you don’t, because there was never exposure to the market coupled with buyer competition and arms-length negotiation.  

What is the average length of stay?

It spells out the monthly rent, when it’s due, the length of the lease (or term), should contain clauses required by the federal and state governments, and much more.

It certainly felt like this was not an arms length transaction.

These syndication can provide an 8%+ cash-on-cash return - providing investors monthly cash flow - and a 15-20% IRR over the length of the project.