It still shocks me how many agents aren't aware of things like the fair notice ordinance.  

STR is another concern, many towns have laws against it but most towns do not enforce these laws, just make sure you are aware of them becuase they can be enforced. 

What I wrote above does not create an attorney/client relationship between us.

There are several out there that I am aware of that are taxed at rates which are currently lower than ordinary income rates. 

Also be aware of Unrelated Business Income Tax (or UBIT) on leveraged real estate inside of an IRA.Or better yet, since you are self-employed - go with a truly self-directed Solo 401k plan, which would be a much better option and will help you avoid the UBIT on this investment.

Quote from @Anthony Sigala: We are all aware of the 1% rule--the gross rent produced by a property must equal 1% of the of the property's acquisition cost.

.: Thanks @Tanner Pile, I wasn't aware of the BP Tax book.

We have offered to allow her to pay a reduced rent for the first few months as well but I am worried that may create some sort of limit on how much we can raise the rent on her in the future.

Interesting, I was aware of how they work in my state, but not about these kind of differences. 

Therefore, it sounds as if this also goes hand in hand with creating a new partnership return for every LLC unless they are single member LLCs.