Generally putting rental real estate inside of any corporate tax entity (C or S) is not a good idea.If you're going to wholly own the RRE assets, owning directly or via a disregarded entity (SMLLC) is generally the way to go for income tax purposes.If you expect to have ~$100k of excess cash flow each year to invest, it might make a lot of sense to spend a little time with an attorney and tax CPA who can advise you based on your individual facts, circumstances, and goals. 

Please DM me if this holds any interest for you and I can give you the name of the Broker agent who can provide you with his opinion as to whether or not you have VA credits coming to you and if your Credit Union is passing them on to you or if they are keeping the credit a secret and worse yet, keeping the credit for themselves.HI Barry,That is true, we operate as a broker and we have set comp plans with each lender that we can only change once every quarter so if there is excess credit in the market we're obligated to not only disclose it you as a borrower but also give you all of the excess credit.If I was a banker or a correspondent lender and I had excess credit I would not have to disclose to you that I had 4.00 pts of credit behind the rate, of which if you had gone to a broker you may have received 1-2 to points of that money you could use to offset your other closing costs, prepaid taxes/insurance/interest,etc.VA IRRRL or interest rate reduction refinance loans are some of the best because they have a refunded funding fee of only .50% or exempt if you're an exempt Vet.Thanks for pointing out the above as Im sure it will help Paul on his decision process.

Unlike the last recession, I see more like a Stagflation coming up since the amount of available capital/cheap money are still excessive in the economy ready to deploy and bid up prices. 

The financial performance of these investments often are disappointing because of excess repair costs and liquidity issues (ability to sell for the amount you paid for it). 

The half dozen big time individual investors that I know in Los Angeles, also, own large management companies that can profit off of excess capacity by managing other owners(especially institutional owners) assets.I would not be surprised if most management companies also owned or were actively trying to acquire assets, too.But, if you are an insurance company or pension trust administrator, you would probably not want to be managing the day to day operations of multi-family even if it makes a great addition to the trust portfolio.It depends of the specific scenario of the owner/s

OOS is a very viable approach for someone in your position with some excess capital that you want to put to work for you.

Seems a bit excessive, was this agreed to beforehand or just now?

This might be SOME rewiring, plus a new panel, meter base, riser, and weatherhead (say somewhere between $4,000-$8,000) or it could require a total rewire (in excess of $8,000).  

Then the question is, how much excess capacity exists in the system and is it located where demand will be. 

One big sticking point is "qualified immunity" which shields some gov workers from literally bullying the rest of us with illogical restrictions, excessive regulation, blundering incompetence, etc.