Note: most older shower heads use 2.5 gpmThis will drastically  reduce water consumption.The last and most expensive option is to replace toilets to low flow models.

Of course, there are still risks with both of those, but can be a 1-3 days for funds, no hassle solution.

Maybe if you have off the charts risk tolerance...... but someone wanting to retire probably A) doesn't want to deal w/ master lease and B) doesn't care to learn about the benefit of a master lease.Even if avg price was 50k, how many people w/ almost 2mil cash for the down payment or who can qualify for 7+ mil loan are going to want to invest in Mesquite, TX (which has less than 200k people)....

Objectively look at the potential return vs risk before proceeding.

Ultimately you will create your own standard based on risk tolerance.

I heard one of my investor buddies say he's got a municipal tax lien reduced often in our county but you know you can't always trust what people say. 

Not saying this would always happen, but I think it’s a bigger risk than diverting residents.

The lender may also be using rates for a primate placement (high-risk) carrier as well.  

I was hoping to BRRRR it, but unless I could reduce the purchase price to $95k the refinance wouldn't cover the purchase and rehab.  

I doubt he is willing to risk Tax Fraud to save you a few bucks.