Also like someone else mentioned, if you just bought the building and have no history with these people it is best to treat them like they are new tenants and get to know their income situation and a background check done. 

But before you rush your decision, you need to realize one critical distinction: treating this transaction as a business allows you to deduct all business expenses against this income.

by default, the K-1's will be treated as passive unless you can show that they are not passive.If they are passive, they would not be eligible to offset your W-2 Income.

Treat investing as a genuine business rather than a side hustle.

He regularly analyzes the best markets to invest in, including how fair they treat landlords.

I do not tolerate anyone treating me or my staff that way, and I won't put up with chronic complainers.

(I know the gist of all of this - but not the specifics... but enough to point it out to you...)So be aware that if you transfer the property to an LLC - your county will likely treat this as a transfer of ownership (like they should)... the LLC is completely separate from you - even if you are the sole owner.  

If the sponsor does not give you quality and timely responses before you wire your money, how do you think you will be treated after you send the money? 

Have a property line dispute in OOS area, referral to kick a$$ lawyer that will treat you well.  

I feel comfortable with my process as I know I am not discriminating due to any of the protected statuses, and I’m also documenting everything and treating everyone equally.