The criteria is both parties need to understand the risks and be prepared to deal with them, and a preferred set of legal docs should be utilized outlining “what if” scenarios. 

Tennessee’s rules and your net-worth gap are exactly why you want the legal and tax pieces talking to each other instead of using a one-size-fits-all S-corp answer.If you’d like, I can outline a “model structures” I use for couples in similar situations (pros/cons, how income and liability flow, etc.) so you have something concrete to discuss with your local attorney and CPA.

Smaller jobs can use a condensed version as long as you cover the main legal points. 

Make sure the downstairs is actually a legal unit.If the bottom level is being advertised as a unit, confirm it meets code (eg., egress, permits, proper electrical/ plumbing).

Realistically, I just don’t see 30 days as “medium” term, I think 30-60 days is still short term, but since legally most jurisdictions regard 30day minimum different from hotel type rentals, it’s easy, if not totally correct, to apply as a definition.  

Always seek the advice of qualified landlord-tenant attorneys in your local area when trying to proceed using "do-it-yourself" methods, because of the legal complexities involved, doing so can potentially create significant exposure for landlords.

I have a unique situation that I have created and open to anyone with legal insight on how to best proceed further. 

There are some expenses like property management rates (I am on a visa so cannot do myself legally) and vacancy which I can ballpark by getting in touch with management firms.

My firm does not handle this type of practice, but I often recommend starting with the state bar association and Martindale.com to find quality representation if you're starting from scratch.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.

I am not a lawyer and I am not giving legal advice.