B- every month you sit vacant, you loose 8.3% of your monthly ask rent on an annualized basis.

I would also suggest studying the zoning code to determine if the city performs annual inspections. 

His current annual debt service after refi is significantly lower than what his annual lease would be years 1-5 with 3% annual increases.

No expenses are deductible on personal days.In this case - The IRS may come and tax you on the rent and disallow you any expenses.On a side note - Allowing a relative to live rent free may require the filing of a gift-tax return if above the annual exclusion.

(specials was $18,534) the only conclusion i can come up with is that it is  35% taxation of that 50,000 annual rental income?

Thank you Hi Mary this is a different topic thread but Fannie used to count all properties in entities as "financed properties," as long as you owned more than 25% in that entity as documented by your annual K1 form which your LP/LLC/Scorp/flow through entity will show your ownership percentage.This meant that even if the mortgage note was in the LLC's name and the title was in the LLC's name you'd still be hit with these properties as financed properties as long as you owned more than 25% of the company/entity.Fannie has evolved their language on how they count financed properties in late 2017.Now their emphasis is on you being "personally obligated," on the note or basically if you're personally obligated on the note/mortgage/paper instrument.A real life experience or example is that most local credit unions or community banks that use the same loan origination software  will make you sign make you sign the mortgage note as a manager of your LLC however the personal guarantee (PG) is a separate document.

Single no kids. 80k annually.

How much does your first property really net annually?   

Considering the fact that you have laborers assists the fact that you can save on self-employment taxes.Please be wary that creating an S-corp has initial set up fees and fees associated with its upkeep(annual SOS fees + annual tax returns).

Put it under an LLC or my name: I dont have a house, still makin payment on my car, so base on my research, I dont need an LLC because I will have to pay LLC application fee and annual fee, more money to file the tax.