We have a RE attorney & mortgage broker to make sure our operation is legal & compliant.

The pitfalls really revolve around prohibited transactions and disqualified parties.

waiit so how are they scammers, they locking it up legally I didn't say they were scammers, I said some people look at them that way.

If you get complaints, remind all parties that noise travels, they were warned to be quiet and respectful of their neighbor, and that repeated issues may result in removal.I have an apartment building where the downstairs renter can hear the upstairs neighbor talking on the phone when it's really quiet at night.

But add to that the related party aspect. 

If you haven’t done so already, consider protecting these assets under a legal structure, such as an LLC or trust, to ensure they are secure.

@Lucy AhlI am not taking sides here, but it sounds like there are quite a few things amiss from both parties. 

It also covers your legal fees simply to defend a bogus lawsuit. 1 million is standard for each of my properties.

Also the expenses should be reported to the business activity (the property) they legally are generated from; not necessarily the entity they are paid through. 

Seller financing allows both sides to negotiate whatever deal that works best for both parties.