I have an attorney in Illinois (Sottile and Barile) who we use that might be able to provide some assistance on this as it could get complex in regards to the situation - especially if any of the current deed holders have children involved.

It was the roofing scams combined with no cap on attorney fees for small claims. 

I'd consult with an attorney before mentioning or including the IRS/collections letters.

Costs of set up of Trust, Costs to attorney to set up note, monthly costs to service the mortgage.Just my guess.My thoughts are if you have reached the level of a trade or business, then yes, these costs would be deductible.

Exonerated 4 times, $0 cost, and the last one paid a $500 settlement plus my attorney's fees with no admission of wrongdoing on a $15k suit.

If they dispute it, you may need an attorney.

I'd consult with an attorney on this.Instead of a partnership why not just borry money?

@David Felt hopefully you had an attorney help you draft the lease, ask them what you can and cannot do within the bounds of the lease and your state laws.

Quote from @Jamie O'Connell: Yes, attorneys can be expensive and time-consuming.

I do this actively networking with other investors, sharing content on sites like Bigger Pockets and Think Realty magazine, and building relationships with referral partners like wealth managers.Finally, you have to have the best people working with you from your lender partner, to your property inspector, to your property manager, to your insurance partner, and asset protection and business attorney.