Both 1970, 14x60 ft. attached to land.My analysis, for my portion of ownership (60%), based on 15 year holding periodPreTax Cash flow $6052Annualized ROI  13.39%IRR 34.82% (includes net sales proceeds of $203,535 at year 15)I've got the property under contract because I felt it to be a solid deal. 

This would be advantageous because I would like to transfer ownership of the units to the tenants in a lease to own and just collect lot rent.For some numbers: List price is $89,000, 3 units rented at $350 a month, two units newly vacant this month.

The work around is if you have ownership in a fund that operates as a tenants in common.

I start by saying I’m not a lawyer...but...In New Hampshire, if a tenant has a lease, it generally must be honored by a new owner, but there are two possible exceptions that I’m aware of.The first would be if a lease includes a specific provision allowing a lease to be dissolved in the case of transfer of ownership.  

My macro bet is on the waning desire of the American dream of home ownership and more emphasis on being mobile through renting.

Absentee Owners have been popular for a long time, and are apparently still somewhat effective (people are still mailing to them) but with all those offers, it's hard to stand out.There are some owner-occupied segments with people who share motivating factors for selling their home.Seniors with Long-time Ownership: often ready to downsize or transition to assistance.Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.By  mixing in these newer owner occupied segments with your lists, you should find inventory without all the competition.Both these categories have additional advantages in that they probably don’t haven’t been updated and may have deferred maintenance.

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.

By renting you can stay mobile and not worry so much about the risks of short term home ownership.

Realistically, it might take 10 years of ownership to average out the bumps before you can accurately assess average monthly cash flows.  

But when they gift it to you you're going to have to meet the use and ownership tests if you want to take advantage of sec 121.