Rent payments from the medical LLC are fully deductible as a business expense, while the property-owning LLC will report the rent as taxable income, which can be offset by deductions for expenses like mortgage interest, property taxes, maintenance, and depreciation.To ensure compliance, document how FMV was determined—using market comparisons, an appraisal, or similar data—and draft a formal lease agreement outlining the terms, rent amount, and responsibilities.

@Allison ParkTwo pro tips to share.1.

Even if we provide you with an answer to this question, there may be other laws you are ignorant of.

Purchase price: $240,000 Cash invested: $60,000 I purchased this duplex in distressed condition using owner financing for $240K and secured a $60K hard money loan for renovations.

Let me know if you have any interest

and it doesn't work like that, especially with prices and interest rates high. 

This is a great tip

You should always require them to add you to their policy as "additional insured" or "additional interest" and you will be notified if they cancel or change their policy.

or get this sold or is the interest rate too hard to get past? 

Hey Brody,I just came across this post.