However, it’s important to remember that S Corps are generally used to minimize self-employment taxes on active income, which may not be as beneficial for rental income, since rental income isn’t subject to self-employment tax.Also, with properties across multiple states, the LLC should be set up in the state where the property is located (NC, SC, GA, or FL), and the S Corp in Florida can be used to manage your operations and provide additional liability protection.

In your case, there are a lot of details that need to be known, such as:-Do you have the mandatory 7-day grace period before rent is late, outlined in your lease?

It just goes to show any investment is subject to market risks whether it is a single family home or 100 unit apartment building.

If he does consider using FHA on the next one he'd be subject to many rules that will hinder his pick of FHA for the purchase assuming he vacates the current property to purchase the "new."

If you share rents, taxes, and your target loan type, I can outline two structures (stabilize-first vs. flex-turnover) so you can choose the lowest-risk path.

They hear about novations, subject to deals, or wholesaling with no money down and believe that is the norm.

However, I would like to hear if there is any person who can attest to the fact of an examination by IRS of any taxpayer anywhere on the subject of STR documentation.

You must be logical in your approach and subjective.

That says a lot about the overall landlord-tenant relationship you built during their stay.Really appreciate you outlining the process improvements as well.

You're talking about "Subject To" here, not seller financing.