If the LLC is owned by an individual or married couple, the IRS considers it a disregarded entity - meaning there are no federal filing requirements.

I also am nervous about the Seattle market and what the government is doing there, not to mention the pending crash everyone seem to be thinking will happen within the next 2-3 years.

You are required to know the laws that govern your business.What you can do depends on their existing lease.

Spokane, Wa suffers a lot as a result of the Seattle-side government. 

If you and your wife file a joint return then from the federal perspective you and she (or rather the tax return that reports the activity of the properties - all of them both from during your marriage and before your marriage) are one and the same tax payer.

It is such a huge issue, you’d think the government would get more creative about solving the homelessness problem. 

They have all the forms you need to handle the purchase and sale, straight from the government.

I pointed out Federal and State capital gains would eat up a good third of that, and since he lived in one of the apartments, where would he live?

Example:Lending to owner occupied homeowners is very complicated and risky with state and federal regulations.

first use a credit card specifically 4 the business on all purchases, never pay cash. same with the bank account if you can. then track all the expenses using something like Quicken. you can categorize any expense and even split an expense if it's partly personal and partly for the property.On the Federal Form E you can specify the percent of the property that is owner-occupied. that's really all there is to it, we've been doing this for many years living in one unit of a multi.