The owners are retired and want to structure the deal to ensure that the amount paid to them is not in a lump sum, as this will negatively effect their reportable income and in turn increase their Medicare costs.

If it gets to that point it might be worth talking to a lawyer to include a disclosure not to pursue legal action or post negatively about you company on the internet as a condition of you both mutually ending the lease.  

Statistically once a home is broken into, it is more likely to get broken into again. 

Interior had water damage.While I'm waiting on the Board to move forward, tenant contacted me complaining of mold issue - saying he wants a mold test & that he'll pay for it if negative.  

Just remember: most negative reviews are written by problematic tenants.

Especially at tax time it makes my life much easier.Now the negatives.

I think your property will negative cashflow at those numbers and that the cash (equity) can be better used elsewhere.

It sounds great on the surface but this is a prime example of when it could have negative implications.I'm not sure how many CPAs you've spoken to already but I would recommend settling on one who specializes in real estate and can help you navigate this situation with confidence.

He wasn't willing to divulge anything positive or negative but the question is, could I get in trouble for disclosing this information to the real landlord about his tenants since it wasn't technically disclosed to me. 

@Larry Marshall Like a couple of people who commented before me, I bought my first property immediately after learning about real estate investing (which has its own negatives).