It promises to improve the security of the units, ensure that only current tenants have keys, and simplify administration.

This is a simplified version of this answer, but you make money by the difference of what you pay in interest (as well as other expenses) and what you make from rent.

Yes, there are risks to investing local, all investments have risk, but at least there you have some control to correct your mistakes and learn hands on from them.As for the CAP example ... yes of course there are more factors that were not covered in the simplified example, some to the advantage of the high CAP market and some to the advantage of the low CAP market ... text books could be written on all those differences, but the point is that a skilled local operator can select a property and investment strategy to make lots of money in either type of market ... just because there is a low CAP rate does not mean your total profits will be lower, just like having a high CAP rate is of no assurance that your profits will be high.

Obviously this is a simplified transaction void of preliminary title report, title insurance, inspection, BPO, appraisal and escrow fees.So what are the minimum qualifications to get schooled or even mentored in this business?

To simplify answering your question, what is the home worth, what equity do you have in the home, what is the total monthly mortgage payment and the expected monthly rent.

I'm thinking of simplifying it a bit to this: "If Buyer has an ownership interest in 1 or more units in the community at time of closing, Buyer agrees to pay seller an additional $65,000 at time of closing."

We'd like to simplify the next generation's responsibility and sell one third to one partner in a cash out deal.  

Luckily, this could be simplified by estimating 3% of the purchasing price and 4% of the sales price for closing costs and then of course the real estate commission, which is 6% of the sales price.Moving on, we almost had the house under contract within the first couple weeks of having it on the market.

This is a very simplified explaination.

Paying in advance doesn't give anyone special privileges, it just simplifies the process.