Maybe the location is so good that sales compensate). 

If the seller refuse I suggest the agent gave up a piece of his compensation.

@Kody BroussardThe issue is whether the LLC the family members are investing into with will be viewed as a disqualified party to their IRA's, or if there is direct or indirect benefit between the IRA and a disqualified party.Chief among disqualified parties to an IRA are lineal family, parents, grandparents, children & grandchildren - or an entity like a business or trust controlled by family.Since you describe this as "your" LLC and you are putting together the entity and likely receiving compensation, then this LLC would most likely be viewed as disqualified to their IRA accounts.  

Personally I would go to the family and show them market rent prices and make them realize they either have to let you raise the rent to 1/2 or more or they need to look wet the price to compensate for the lost rent.Figure she is going to live there another 5 years before death or being moved into a nursing home and try to estimate the cost of the lost rent and take it off the purchase price.

If you can afford to think in 20 or 30 year terms it is hard to go very wrong with an asset that on average appreciates, and an income stream (rent) that you can compensate for inflation (raise).Example 3: Joe the Plumber has a low paying job but owns his house outright.

I offered to change the rent due date to compensate...and to try to put an end to late payments.

I am a realtor and whenever a client asks me to help them buy a short sale, and it is not a listing of mine, I have the buyer sign a brokers agent agreement to compensate me directly out of their own funds for the purchase.

So don't be afraid to compensate yourself for it.  

The easiest and cheapest way out may simply be to get with Jose, who if he didn't know then, now knows the truth of the situation regarding his dwelling and while his status is what it is, he still owes some money to someone and that person deserves to be rightfully compensated. 

In areas like silicon valley it is not unusual at all for a company to arrange and pay for housing for key employees, sometimes it is even part of their compensation package.