I don't think ownership changes hands unless they abandon the property.

If you know about the active participation rule and think you can meet, and meet the ownership rule, which you meet, yes, both of you can claim the activity as active participation real estate activities. 

It could easily be interpreted that the product you are selling is the purchase of their home.Consider working with a list broker who can make some suggestions of new lists for motivated sellers that don't rely on public data and are therefore exempt from the rules that you are running into with the tax records.One such list is Owners with Low Financial Stability Scores (FSS), another is Seniors with Long-time Ownership.

Ownership reverts back to the landlord with full rights and the leasehold estate no longer exists.

FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance.Any person individually or jointly owning a home covered by an FHA- insured mortgage in which ownership is maintained may not purchase another principal residence with FHA insurance, except in certain situations as described in HUD 4155.1 4.B.2.d.”Then note the only the exceptions where you may be allowed to have a second FHA loan at one time.

The best way to find them is to send out mailers.Some good lists to target are Absentee Owners with Equity, Seniors with Long-time Ownership and Homeowners with Low Financial Stability Scores.You can work with a list broker to optimize your list for your area.

Although IRS still express that homeowner can deduct mortgage interest, the itemized deductions are  capped for home ownership based on modified gross earnings.

I will receive a couple of ownership percentage points in exchange for putting this deal together. 

The young couple and Flint's residents have agreed to the following offer:We will accept transfer of ownership of the Flint house from the young couple as option money for a 6-month lease in the Walnut house (at $800/mo), and also apply a $10k reduction in the $95k purchase price when/if they follow through with a SF contract with us at $750/mo (we estimate 5 years before they'll comfortably qualify for a bank loan).

You can certainly transfer the property ownership to your LLC or S Corp after closing....but that's who OWNS the property; not who is responsible for the loan.