I have talked with their president and VP and they seem to be great guys.

They may still want to stay if they've been there long-term, but more than likely they will elect to move out.A bank will want a 1-year lease and you shouldn't feel bad about getting market rents.

Hello, I am a newly-formed single member LLC, and am planning on electing s-corp status to avoid self employment tax.

He and the board president are friends so the board crafted a transferable lease for that spot to that particular owner. 

Even if Congress passed this we're in an election cycle so I can't imagine much that is controversial being worked on.  

An election can be made to move the $5k and the associated interest over to Sch A so you won't "lose" the decision in that manner.But if you can't find a way to apply the capital in a feasible manner, don't make a hasty decision simply for a $225 write off.

Here in the valley, one idiot HOA president was just outright using charges from the reserve monies for his vacations, and other personal expenses. 

There's three single family homes all in great condition and much nicer than the apt buildingsI'm meeting with a bank president (family friend) tomorrow to ask general advice and discuss the deal.

Also, an LLC can elect to be taxed like an S Corporation.While there is never only one answer that is correct for all circumstances, there is a general rule that is almost always the correct choice.

People will have more choices where to go enjoy their habit and might opt for warmer climates, ex NV and AZ this election cycle.