Thank you in advance as we all need all the help we can get on the complex world of the tax code. 

I would add, also check to see if you state has court cases on line.

This is all to show to a Court and a savvy plaintiff attorney (when you get sued) that your business activities follow corporate formalities and they are separate from you as an individual. 

You are terminating their lease, which is done without court involvement.I recommend you present the tenants with an introduction letter as soon as you close on the property.

Even if you get a solid PM I always like to double-check the county court records and see if anything was missed. 

The investors who are preparing to buy their first property and don't have two pennies to rub together wanting to spend thousands on complexed entity formation for asset protection purposes. 

Sometimes simple is better than complex and in tracking expenses, simple is often the best approach. 

They probably do crack down now and then and the consequences will probably be way more expensive when you are in the federal court system, than just a slap on the wrist or a finger wag.   

Also it would likely need a registered agent in state to properly handle a court process.

Meaning you will pay both sides attorneys fees as well as end up with other possible costs going forward in your life and possible court forced asset liquidations and kicked out of your home.