Nonfarm payrolls rose 2.5 million, and the unemployment rate dropped to 13.3% (or 16.3% depending on who you ask).

He has been paying rent in a timely manner and keeping the SFH very tidy, but I’m concerned he is a sophisticated and experienced tenant who may be wanting to take over my home from his actions above.

If my investments ever get more sophisticated than this basic rental, I'll probably have to find a more RE focused CPA. 

What is the sophistication level of the tenant?

Your employee contribution to the plan comes from the final compensation number, so after payroll taxes.You should also evaluate employer profit sharing contributions which come after the employer's half of payroll taxes but before being deemed compensation to you so therefore ahead of your half of the payroll taxes. 

The level of sophistication of renters is really low.... 

And we have to pay our employer share of payroll tax, so that erases another 15.3% in total.

But the more complex, the more sophisticated each member should be.GP/LP when there will be active and passive participation. 

@Elizabeth MooreThere may be some potential tax savings with the set up of an S-corp.You need to be mindful that there are costs for the upkeep of an S-corp so it is suggested to only get an S-corp when the tax savings would be greater than the upkeep of the S-corp.S-corps require a separate tax return along with payroll tax filings.

If you are their most sophisticated real estate investor client, they can't help you become any smarter.Your accountant can't help you get somewhere they themselves have never been.