Am I understanding you correctly ?   

Our whole business is centered around getting them on a path to homeownership. 

@Eric Schwake@Mark Welp is technically correct that real estate outside of an IRA is fairly well tax sheltered.   

I’m not a CPA, so I’d check with yours to make sure I’m correct before you go adding an unnecessary interest rate to your deal (if you don’t have to), but when I make all of my seller financing deals I use this link to see what the minimum interest rate is for the time period of my contract agreement (https://apps.irs.gov/app/picklist/list/federalRates.html)Let me know if you have any other questions.

Do we have to the give the tenant a chance to correct the violations of the lease. 

@Peter Moser ...its the same thing as far as I can tell, PITI is probably the correct acronym.

With appreciation, you won’t be able to pull your money out for a few years at least even if you bet correctly on the market.

Can anyone suggest alternative paths forward?

I think the surrounding counties are a good place to be as long as it’s on the path progress.

Your thinking about that work is close to correct.