Some people can't sleep if their money is at risk in securities.  

I'm not interested in buying a total clunker that would require a complete gut job, and I intend to purchase the property in cash with no lender.

They assured me it totally legal.

Be sure to get the security deposits for all four tenants at closing.

The person leasing does not have to occupy the property but the lease has to  be executed - meaning signed by all parties and the security deposit already deposited into your account.  4.

If I want to generate $100,000 of passive income, at $200 each thats 500 units, which could mean a total mortgage of $25 Million.

         $15,000     Total cost                                                                                                                  $80,000Based on comps land should be worth                                                             $170,000**The land I'm purchasing is 3 acres. 

So the attorney either doesn't get the nuance within a "safe harbor" or more likely they understand her total picture better and know her situation.

At that point, you'll have to get gross numbers like total monthly rent and current NOI, and base your offer on that. 

They are interested in being equity partners as opposed to lenders, but would still require their investment be secured by the underlying properties.