It appears to be a means to an end and the path of least resistance (somewhat related to number 1).

The issue is our land value is high, so the structure value is low compared to the overall property cost. 

Premiums in Iowa, Minnesota, Montana, Utah, and Washington jumped by more than 20 percent.The insurance situation is especially serious in California and Florida.In 2023, around 7 percent of realtors saw deals fall through due to insurance issues, with the share jumping to 13 percent last year as of October, according the California Association of Realtors.

Can you explain how your company solves the partial note issue? 

I'm not sure I would get to cute trying to squeeze every time out of it now with a lease that might cause you issues in the future, but the scenario you describe is common and probably smart. 

The executor of the estate also should have had some basis for that as well.Fair market value when your relative passe as @Jake Baker and @Cory Carlson said.

So far, I haven't had any issues renting my unit.

What you want is, as they say: relatively simple, but not easy.

The IRS views this as a related-party transaction, and deductions like rent paid to yourself wouldn’t qualify.

Since Landlords are going to be monitored even more now with the price gouging issues surrounding the fires in LA, I would be extra cautious.