Purchase and maintain the subsequent properties through the Trust.

I find they're able to maintain a detached, broad view of the situation and open your eyes to things you may be missing while working in the middle of things.

It gives them a great education not only about money, but about how to maintain a house (yes I know they aren't going to rewire it themselves at that age). 

Now we have renters moving into those rooms, (we moved into the low portion of the house) and I am nervous about how I should heat them, I want to add electric wall heaters with thermostats to maintain 72F but I am afraid the tenants will get crazy with the heat and I will be stuck with the bill.

This LLC will not own any property, only manage them.The cons are it's one more LLC to maintain.

In your case it's well worth it to tape some equity and still maintain a nice profit margin.I hope this helps.

2) Purchase price $50,000, 10 of that allocated to the land. 30 years later, after allowing the building to deteriorate instead of maintaining it, you decide that you no longer want it to be a rental.

We could rent it out, but we wouldn't be able to maintain the level of care and cleanliness needed to sell. 

Often times I see well maintained multifamily properties being listed for prices well beyond what I can cash flow with after the morgage and even “loose” estimations on cap ex, maintenance, vacancies...

@Vivek Desai it really depends if you have the energy to maintain the exterior of the home - if not, then a condo/townhome would be a pretty good option if the complex allows rentals (have your real estate professional check this for you).