Codes are state specific, time to start studying.

I don't think there is any problem with retaining a life estate, but I would have a tax practitioner that specializes in Estate & Gift issues assist in making the relevant calculations and drafting the supporting documentation.

It's amazing when you study the people that are highly successful and they make it look easy  the complexity behind it that makes the business actually go.

So I'm trying to get to the owner before they've exhausted all their options of unsuccessfully selling on their own and start seeking agent assistance.

Just like every other real estate niche there is probably money to be made if you study and work hard.  

My suggestion is you buy a house you want and if needed use a down-payment (dp) assistance program.

I have identified a handful of properties which work very well for the single family assisted-living/memory care model.

I would recommend you look into owning at least the real estate portion of a single family memory care or assisted living home.

Happy to try and assist .

He is willing to pull some cash out of this house to assist with some of the repairs also (so he has a mortgage to write off or tax reasons).