We are planning to build some extra leasable space for another professional tenant TBD. 

I don't know about you but I am constantly on the hunt for consistency, consistency of income, of deals, of productivity, in my relationships...so that's my focus in all things not just real estate.So my vision to your question is a a state of total consistency of income and deals.I'm focused on the basics, which to drive me is even more specifically "making offers."  

That said, with today's rates, every increment of extra mortgage is way costlier than it was four years ago during the sub-3%-rate Covid days. 

I found some tenants consistently looked at it as rent is not due until the 10th, then would ask for leniency because they were only 1 day late on the 11th.

imagine building as well at 25% below market prices. not only does new construction sell at a premium to existing inventory but it also helps you enter the market more competitive. you can accelerate this massively buy having a strategy to consistently position yourself at 25% below the market. like fix and flip.

Seems like it is best to go with what is written in the will - split the estate and he gets 160k extra.

As Hai mentioned in BC there are a couple of extra things to factor in if your parents sell it to you-the capital gains, foreign buyer's tax AND the property transfer tax all apply in BC and the middle one is not cheap (an extra 15%). 

Contract for deed seems ideal as you could be making payments to him, which helps him pay the mortgage and extra for his apartment/travel.

This is a physical asset, not paper, and it's providing consistent income.Albeit for your not understanding tax laws and depreciation, I'm wondering why there's a question as to what you should keep.You understand capital gains, but I'm pretty sure you're not familiar with depreciation and loan paydown.

.✔ It provides an extra liability firewall—the AMLP owns the LLCs, preventing direct lawsuits against you.✔ Keeps operations separate from property ownership—reducing legal risks from tenant disputes.✔ Strongest legal structure in Texas—LLCs roll up into the AMLP, keeping your name off public records.📌 Best Setup for Maximum Protection in Texas:1️⃣ Each rental property in its own LLC – Shields assets from each other.2️⃣ An Asset Management Limited Partnership (AMLP) – Owns the LLCs and manages them, keeping liability separate.3️⃣ Bridge Trust® for high-net-worth investors – If you scale up, this structure protects your entire portfolio from lawsuits.Final TakeawayWhile an LLC isn’t required to rent a property, it’s one of the best ways to protect yourself from lawsuits.