Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

@Victor Yang To use the rental losses to offset any active income (W2), you'd have meet Real Estate Professional status (which would be difficult to do with a W2 job because you'd have to work more on real estate than any other job to qualify) OR have an AGI of $150K or less.

Now, when you talk to the tenant today, be straightforward but professional.

Work with a tax professional (preferably a CPA that does tax planning and not someone at H&R Block or TurboTax) to ensure you qualify.

From not having an attorney draft the docs, to trying to cheat the system with the deed in lieu to not professionally servicing the loan.

Rather than how a professional would answer. 

Most professionals will recommend a separate LLC for every $1 million in assets but I don't think that's necessary.

Thank you for your professional guidance.Sincerely, 

Readers should seek professional advice.

PMC is the professional that will have the most alignment with your goals - agents, lenders, inspectors, etc., are ONLY transaction based.A PMC has to deal with your property, tenants & maintenance EVERY DAY until you sell or terminate them.A great PMC can provide contractors and also check out properties for you.