Location also is as important to me as cashflow, since I'm looking at this from a hospitality perspective and it's walking distance to a well attended school/amenities.

Do not base your purchase on just the perspective or current CAP rates.

To examine what's going to happen to you holistically from a tax perspective you need to examine your tax income/loss allocation via the partnership agreement as well as your cash in/cash out.Depreciation is just one expense also. 

From your attorney's perspective, you should structure it as an contract for deed as the equitable title would be conveyed immediately but the actual title would convey down the line.

You should run this through BDE Legal and at least see what it looks like from JAG's perspective.

Thanks, Patricia,From tenant’s perspective, the lease is with previous owner, he/she should stop paying rent to the previous owner after sales completed?

I have personally lived and owned a unit in this building and while the units have appreciated a lot the last few years, from a numbers perspective the rent to price isn't very good.  

From my perspective, your two risks are the two separate loans which could potentially leave you in possession of just one of the properties in the event of default and foreclosure, and ICA language which reduces your rights as a 1st position lender to protect your financial position in the property.   

I do know a very good real estate lawyer here in Texas, Happy to connect you with them to atleast get his opinion on the matter so you are hearing it from a legal perspective not peoples opinions.

@Jordan Deeney thanks Jordan for this comprehensive perspective.