Whether for mental, physical, or spiritual health; I want to make sure that they will have happiness in their lives.

But now that I am seeing free-standing structures in the same neighborhood, I am not so convinced.

That is not quite what you have structured here. 

Due diligence has three steps. 1. financial 2. physical 3. legal.Perform your financial first.  

I'm more thinking about minimizing legal risk, if we can structure it where there's a "building lease" from us to the LLC and then the renters sublet from the LLC and pay into those accounts. 

The building is all stick, and the floors are like a fun house up/down. this could mean significant structural issues, or a lot of down time trying to fix these issues. it also needs a roof and lot of minor repairs to get it up to standard for this area.

Not the way I would structure that.  

Sometimes referred to as an SPI (Structural Pest Inspection).  

Was thinking of this thread today.Found a SF home that was structurally sound in an expensive neighborhood marked way down.No appliances in the kitchen and no toilet or sink in one bathroom. 

I wonder if there's a way to structure things so that there are monetary incentives for the PM when they keep a tenant in place long term (reducing turnover), and perform enough preventative maintenance to avoid high cost repairs that could have been prevented.