In the borrowed capital was used in an activity that is a mere investment, or is personal in nature, a 1099-INT obligation won't exist.A Form 1098 obligation is only triggered if the loan is a mortgage and the interest is received in the ordinary course of trade or business of the lender from an individual or sole proprietor taxpayer. 

It may not be fun 'thinking' you'll be leaving money on the table by lowering your rent... but really... lowering you rent by a mere $25-$50 can be enough to make your rent irresistible and you'll likely recoup that in decreased vacancy. 

Merely gauging interest in an idea.

My suggestion to obtain a Quit Claim Deed is merely one way to move forward with this deal immediately -despite the problems with administration of the trust. 

I've had the discussion where the advantage of having your own insurance is they lawyers will represent the policy holder as opposed to maybe a sub added to the policy. 

@Brandon Kamm your absolutely right when I wrote the original post I was merely going off the sellers word about the property tax but after further research we discovered its an additional  $4,200 due every year for taxes for the county so were adjusting our numbers now.

With that in mind, let’s dispense with a mere $70,000 loan.

The only thing I disagree with Jon about is there is no additional liability protection with this model because the LLC is not the owner of the property, merely the manager.You don't necessarily have to form an LLC to do this, Kelsey;  you could probably just do a DBA that has both your tax IDs associated with it. 

You may be able to argue that the old lease is still in effect, and has merely gone month to month.

If you merely transfer the bank may not look favorably upon it and if you refi you will likely end up with a worse rate.