I wanted to treat it more professionally, at least from a documentation perspective.

Generally what happens is the appraiser will appraise it at its highest legal use or in this case a SFR based on the zoning for value purposes.

You have to do some real research on why the taxes on the lot are not being paid. 1) Could be simple mistake - then the lot owner will redeem to keep the lease payment income from the building owner coming in. 2) Building parcel owner and lot parcel owner are in a legal battle.

Documentation is what it is, and you'll be asked to supply lots of it.

Look - the only way to do this cleanly and legally is just like any other; put it under contract and double close.

Straw buyers are a legal practice as long as it is disclosed with a conventional loan.

I recommend you become a student of that homepath website and try to document their behavior, like you are Jane Goodall watching some gorillas.In my area, they drop the price about 7.5% every 30 days the house is on the market for the most part, almost like clockwork.

I'm not sure it's even legal?

Are these sketchy $400 leases even legal?

You probably need to check this out legally.