The courts have already held that this does not constitute entrapment.The best course of action is to treat all comers exactly the same.

Am wondering if I should for the sake of keeping the books straight charge myself rent (I have no plans to file eviction against myself if I don't pay).PS The unit is not held in an LLC and I have no plans to do that.

@Jeremy Woods if we really want to get in the weeds...An LLC owner can be held personally liable if he or she: personally and directly injures someonepersonally guarantees a bank loan or a business debt on which the LLC defaultsfails to deposit taxes withheld from employees' wagesintentionally does something fraudulent, illegal, or reckless that causes harm to the company or to someone else, ortreats the LLC as an extension of his or her personal affairs, rather than as a separate legal entity.Wouldn't buying in your name then transferring to the LLC meet the two bold comments?

You don't actually lose it, it's held in suspense, you can deduct it later if your income drops, but that's another long story.

I was actually a profession poker player once upon a time.

I found this little nugget of info in the instructions for Schedule C (Line 1):Installment sales.Generally, the installment method cannot be used to report income from the sale of (a) personal property regularly sold under the installment method, or (b) real property held for resale to customers.

How long have they held their current jobs? 

Love the fact you bought in bed stuy at the peak and held through it!

You do not want to be held responsible for a tennat injuring themselves on your property doing work.

You may have some liability protection for assets not held in the LLC and check with an accountant for any possible benefits from the new tax law.