From a tax standpoint, you lose the sec121 exclusion as mentioned above.Its not advisable either to hold real property in C or S Corp...You even mentioned sole proprietor... 

Operating without an entity makes you a sole proprietor business.

I saw some info where it looks like the IRS has issued guidance and that a sole proprietor who is a landlord can take the 20% Passthrough deduction. 

A sole proprietorship is an unincorporated business and the default choice for anyone who runs a business but hasn’t set up another formal business structure, such as an LLC.As a sole proprietor, there’s no separation between your personal and business assets and expenses.

Schedule C if you a sole proprietor) & you do not have any w-2 employees working for your self-employed business or otherwise.2.

I am not licensed in CA and not sure how their work comp rules work but in NJ if the contractor is a sole proprietor or a single member LLC they are NOT required to carry work comp. 

Did you go with a sole proprietor, LLC, or corporation? 

You aren't combing through the guy's whole tax return, just the Schedule A for a sole proprietor or a Schedule E if any other type of corporate animal.Go on with your bad self, and YMMV,Tevis

Offer the proprietors of those shops a "reward" for any eventual buyer who mentions that shop as referring the buyer.Some other BP links somewhat related to this topic:http://www.biggerpockets.com/forums/312/topics/50809-please-help-need-some-ideas-on-selling-homehttp://www.biggerpockets.com/forums/93/topics/43640-ideas-for-selling-a-wholesale-property-in-a-week

My wife has pre-existing conditions which means to insure our family as a sole proprietor our insurance bill will exceed $2k per month.