People know what you're all about, unless they are have lived under a rock, There is always the day of closing, when you decide to back out of the contract, leaving the sellers hanging.

But instead of getting steered in a direction of right/left per your example, I'm told "you shouldn't be messing with concepts you don't understand" and "it's not simple, go get some advice from a real tax pro" who in all likelihood will just be an accountant who files taxes for a living and has no real experience with these concepts and will tell me it's not worth it, like Mike did. 

The tenant has been living there for just over 10 years.

I need a new job that aligns better with my passions, where I can make enough money to live in the meantime - so something in sales - but I legally can’t get a real estate license, and can’t go without pay in the meantime before sales. 

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

He wants to give the house to the 4 children and 2 of the children are willing to contribute added capital to improve the house so that Dad can live there for the rest of his life, he is currently 80 years old.  

First timer here, I live in Seattle, WA houses here are too expensive to make a mistakes for first timer, so I am considering start small from more affordable areas, like Detroit Metro Area or Cleveland, or maybe other locations more seasoned investors can recommend. 

@Madden Telles  FHA loans are only for purchasing a home to live in, so you wouldn't be able to use this type of loan to purchase an investment property, and you won't be able to buy it under an LLC. 

@Brian KilpatrickYou 100% do not need an LLC (speaking for Texas)I have 1 primary residence turned rental and now live in another primary.

Initially, they might face severe struggles, sometimes even needing to relocate or downgrade their living situations to make ends meet.