I know they exist and have known this for decades.. just really never seen them used.. at least on the West coast.. sophisticated buyers wont sign them is my thought I know I would not. 

This is sophisticated stuff but it is difficult to forecast not only future rents and expenses but the eventual sale price. should that potential increase be considered when evaluating a property?

He has told me that whenever he had started a new job the state immediately initiated garnishment on all his payroll checks.My concern is that when it comes time to sell the property will the state have access to the profit from the property?

In pools, much of this has been done, if other institutions are involved in bidding or negotiation, the asking price may reflect the actual value, these are sophisticated buyers, they have the expertise and staff to value what THEY are looking for.

ROE & cap rates are always a bit variable, but GRM is straight forward, even if lacking in sophistication.

Yes, it is possible, to a degree but to do so you need to take into other considerations as to the local market, property condition, credit issues, qualifications of the borrower and ability to reduce the UPB, the term involved and issues of predatory dealing which is an issue in commercial lending as well as residential.Big misconception of money types and dealers is that if my deal is a "commercial" transaction, I'm free to do whatever as commercial is viewed as being between sophisticated parties.

classify my LLC as S-Corp and deal with payroll hassle or keep it as partnership?

I recently did a deal with another bank, and when i gave him my global DSCR spreadsheet he realized he was dealing with a fairly sophisticated investor.On a side note, I suggest often that everyone wanting to be a REI understand what banks want, and how they underwrite loans.

Our goal is once we get the tenants that we want, we have the tenant base, the class of tenants we want, our goal is to switch some of that marketing down into payroll because extraordinary customer service is what retains tenants, and is much for profitable for us to retain tenants than go get new ones.

@Lou VeigaMost of the time tenants DO know, because the Sheriff posts the property with the notice of sale.The owner of this property with 40 LLC would seem to be a pretty sophisticated owner and it would seem unlikely that he would lose $100,000 in equity through foreclosure.