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.

I read Pamela's response in January 2025!

I have voiced several concerns with no responses.

Tenants should certainly take responsibility for maintaining the property and promptly informing the landlord of any maintenance concerns.

Meghan, Thanks for the response!

The market is slow currently and you need to check flood zones and assess insurance costs when underwriting a deal.

Hi Thanks for the response and advice!

My client's have been happy with the draw process and response times as well.

And yes, you are still responsible for wiring earnest money to the closing attorney/title company when you put the property under contract.

One would be amazed at how many cities were platted between 1900 and 1940 in CA then the slow build out started..