This is the reason I made this post.

And should I state this as a reason as to why his rent is being raised.  

I've never had to use hard money before, so I am not sure what type of conditions are reasonable.

FNMA does have limited allowances if the LLC is whole owned by the borrower. https://servicing-guide.fanniemae.com/svc/d1-4.1-02/allowabl...There's really only three reasons to put your SFR properties under an LLC:1) A DSCR lender requires it: just setup the LLC correctly.2) Anonymity: In Michigan, you can create an LLC with a Registered Agent and use their address to hide your ownership. - Have seen many investors create their own LLC and use their name & address:(- Only works if you put a property in LLC when you purchase.

Can someone explain the advantages of having (LLC #B) taxed as an S-Corp as I am told only my “reasonable salary” paid out from (LLC #B) would be subject to self employment taxes.I.e., I earn $200K through commissions through LLC #B.

If you want to offer a "rebate" of some kind after they stay up to date for certain amount of time, I'm more inclined to go that way, but in general theres no real good reason to put yourself as the owner in the middle of the utilities unless they aren't metered in a way to bill directly.  

Mainly bc they are the reason that I was able to acquire the property.

I have the same idea as you and I think thats the best, most reasonable way.

Can someone please explain the reason some operators are having trouble with big multifamily properties right now?

I am currently using Proper to insure another property, and they're very good and reasonable as well.Like I said above - why take a risk?