I feel it’s very unprofessional even if it sounds like a kind thing to do.

I don't know any of these kinds of investors directly but it's a good thing we have laws in place that require a process that prevents lenders from steamrollering people out of their homes. 

You may be hard pressed to get a single family to fork over the rent for that kind of house.

Also, is there a credit card that anyone prefers because of the perks or any kind of other information in relation to this?

The kind you look for and hardly ever find.

The rules differ based on the kind of lender (bank, CU, etc.). 

No Solar stuff, No Ham Radio antennas, No Flag poles, etc...If it were me, (to be tactful) I'd tell them it seemed like a good idea but my attorney advised against it, and leave it at that.That way you are not getting in to any kind  of perceived Political or environmental disagreement with them, and you remain the innocent middle man.Just my 2 cents.Good Luck!

I pretty much came to this conclusion after making the thread but now I'm much more confident this is the way to go - I'll suggest they keep the house and take out a home equity line of credit while I act as a the project manager so to speak for a cut.It's good no one will pay capital gains tax, but what kind of tax can I anticipate for either of us in the state of TN (even a rough estimate would be helpful)?

Get a pre-qualified letter from a lender, know what kind of rates and terms you qualify for, and if those work for you, then start putting in some serious offers.

As Michael Ealy pointed out, you're going to find all kinds of stupid money these days in 2-4 unit multifamilies.