They wanted rent rebates and had minor maint issues that were blown way out of proportion.

I have a few thoughts, but all of them seem to have some pretty major downsides, so I'm looking for advice on which direction to go, or options I haven't considered:Option #1: Setup a separate LLC with its own payroll, have the new employee work and be paid from here, and then contribute from the three companies and personally in proportion to the work that they perform for each entity.

But based on what I've observed the proportion of Section 8 tenants an operator will have is somewhat dependent on where you own your buildings.

Is your cash flow proportional ($1500-$2500/mo)?

"[5] Before the advent of the automobile, Detroit was a small, compact, regional manufacturing center.

In GA, you're permitted to allocate the water proportionally based upon square footage.  

Few properties have tons of equity to play with, this is blown out of proportion by gurus, having a highly motivated seller with tons of equity as if all will yield big profits, rarely reality.

I should also note that equity investors also get the same tax advantages treatment in most cases as if you bought a property outright because the tax advantages are passed on to you (remember I said you own a part of the asset) in proportion to your ownership in the asset itself.  

Another option he mentioned was to set up a tenant-in-common structure (TIC) and each partner would buy the proportional share of the new property (with your client doing an exchange for his share). 

., yes, their Cap Ex over time will represent a higher proportion of their income than for higher priced properties, but that's certainly not sufficient reason to ONLY buy properties that start at triple the price, but when it comes to cold hard monthly cash, only return a third extra!