If you choose to set it up in Illinois (IL) and then file as a foreign entity in MI, you will end up paying two state filing fees, which unnecessarily increases your costs.

Is your concern reliability or effectiveness?

Your option there would be to increase the duration of the payments or pay him more down if you have the cash. 

Of course, when the cap rate eventually increase, that would be a different story.For those of you who invested in previous funds, do you know what was the going in cap rate for the MHP in your fund?

., multiple owners, estate planning, or asset protection concerns), consulting an attorney may be beneficial.2.

The difference would be $6,800/year with a 3% increase over 5 years. 

My main concern is maintaining a good relationship with the relocation company for potential future stays, as they were very understanding and realized it was due to asthma issues (I have not worked with the company before).I would appreciate any thoughts on how you would proceed in this situation.

It sounds like a single family house where you will be living in the house(personal use).Therefore, you may not be getting the tax benefits you think you are.Consult an accountant.I am not sure why your sister would agree to this as well, she is losing $170,000 in this transaction and she faces the possibility of you increasing her rent.You also have to charge market rent or close to market rent or it is all deemed personal use.

I think we are competitively priced, so most of out tenants have been renewing, but we plan to test higher rents in 2025  for our larger apartment buildings to account for the steep increase in insurance prices.There have been A LOT of new apartment buildings put up recently in the Cedar Rapids metro area, so depending on the class of tenant you have, maybe that could account for some of softening you are seeing? 

Increasing it to at least $500K to $1M ensures better protection.