Can someone explain something about the buy, borrow, die concept of avoiding income taxes? 

Happy to explain further if needed.

Based on what you have explained here and assuming that all of it is true, than you really only have two options to get it rented1.

If you continue filing taxes jointly the income you realize from your separate property will still need to be explained and redacted, regardless of the type of entity holding the real estate.

Agree with most here...the longer it takes to explain a situation or a deal, the less likely I am to want to do it.

Thanks for explaining this!

I start by explaining that they are not abiding by the agreement and I want them out.

@Ashley Wilson you do not need to explain or defend yourself.Over the years, I’ve contributed countless pages of valuable content here on BiggerPockets, breaking down in excruciating detail why over 90% of investors struggle to land deals (hint: it’s all about marketing).

That is where the concern would be for me.Yeah, older tenants may think that it automatically makes someone a criminal of something, but I would just explain the card and that it at least, in theory, has a medical purpose, unlike cigarette smoke which kills the smokers and everyone else around.

Drive around the neighborhoods to understand the lay of the land - if you have someone who will take you around and explain, better yet.