In this case, let's hold it until maturity to calculate the numbers.The Total Return for this asset is 23.13%.

So that keeps all but the more cashed up or mature investors out of the game.

I cannot enter the information for them because the website asks for additional personal information to verify identity.

The way it's taxed is identical whether it's in an LLC or not.

Normally, I wouldn't consider this at all, but given the tenant's 2 years at the property and their stated desire to purchase in addition to nearly identical existing comps in the past 6 months I'd feel confident in accurately coming up with fair market pricing.

Or are you some fake dude that is really in Botswana trying to steal my identity?

Maybe she’s a victim of identity theft.

I assumed the penalty (if there's even one) could be "de-escalating" as the note matures.  2. 

with misinformation ;) I thought the topic warranted its own thread: http://www.biggerpockets.com/forums/16-reos/topics/52843-identity-of-interest-transactions-aka-non-arms-length-transactions-Long story short... unless the rules of changed considerably since 2003 (very possible), then it seems that if family member purchases home, then I lease and occupy for 6 months on formal lease, then buy with stated intent of primary residence.... all good. maximum LTV (3.5% down?)

There’s a gazillion posts identical to this already here on the forums with tons of input and feedback.