But by doing so, that particular PM -- under the current standard arrangements -- will not maximize his own income.Financial incentives are typically not aligned between owners and PMs...even when a PM does everything he's supposed to do, ethically and legally. 

I think this arrangement reduces risk - mold conditions can't exacerbate, it takes 3+ months to grow marijuana plants, I'll see signs of extra "tenants" or anything sketchy happening, etc.I prefer to have my hands in my investment for now. 

I know that loan assumption is often difficult because banks usually do not approve these arrangements. 

All the work is completed I have already made final payments and house is getting ready for market so I guess I will just deal with it via escrow when it closes and make arrangements with my contractor

Whatever arrangement you decide on, one clause you might want to consider putting in the lease agreement is to allow you to approve of the new business operator, if the 1st tenant decides to sell their business down the road, so you have the ability to say yea or nay to whoever might be purchasing your tenant's business.

I would be more than happy to arrange the meeting space and time and to coordinate the whole event.

And of course the much lower monthly payment.Obviously, the first thing I'm looking for from the BP community is if this is an acceptable arrangement to the IRS.  

They went with one of those Mailboxes, Etc. type places and have it arranged that they can contact the business monthly, provide a mailing address and the company empties their PO Box and ships it to them. 

Those are arrangement which in my opinion violate the spirit of RESPA and should never have been permitted.

For Example: They are carrying about 300k of loans that they took out over the last few years, property is worth around 750k to me, so I proposed making their payments on their existing loans then making a separate loan payment to them for the difference at say 5.5% interest with the option for either party to request a balloon payoff at the 2 year mark (when I could reasonably expect to be able to qualify for a re-fi on the property as an established landlord), or we could continue on if all parties are happy with the arrangement.