Not that easy, you have to often over complicate deals to determine fee, payback period, and what not. 

They might qualify if they lived there 2 of the past 5 years, but having it in an S-Corp complicates things.

That way, they share in the profits directly, which avoids complications like this.It’s definitely a good idea to check with your CPA to ensure your entities and agreements are structured correctly, this scenario comes up more often than you’d think.

Since it’s actually a little complicated, I’ll do it in steps.

In most cases, an S-corp is not ideal for long-term rentals (you can lose flexibility on losses and step-up, and it complicates getting properties in/out of the entity).

If you don't do cost seg now, you will have to file 3115 later which makes things complicated.

When there’s another partner in the deal who’s also actively involved, proving enough participation can become more complicated.

this not that complicated if your doing a true sub to the only doc needed is the deed from the owner to you.. the other docs already exist. any closer can do these for you.

You can get a CPA once have a few properties, its not really that complicated. 

Did it strengthen or complicate your investment process?