When investors invest their hard-earned money into a project, we expect the highest possible return.

Rent payments from the medical LLC are fully deductible as a business expense, while the property-owning LLC will report the rent as taxable income, which can be offset by deductions for expenses like mortgage interest, property taxes, maintenance, and depreciation.To ensure compliance, document how FMV was determined—using market comparisons, an appraisal, or similar data—and draft a formal lease agreement outlining the terms, rent amount, and responsibilities.

You would have had to be there for at least that to save on the capital gains taxes (up to 250k). 

Any advice on what setup is easiest and most tax advantaged?

Yes, do the tax exchange if you can.  

Consult your local CPA to calculate accurately and minimize your tax liability.

I would search the BP forums because your tax / legal related questions likely have already been asked.However, it doesn't hurt to still ask the forum what your questions are.

For instance, Berea is a charming college town, but the combination of local taxes and less favorable price-to-rent ratios makes it less appealing for investment compared to other areas in the state.Agree here! 

Utilized a low down payment loan, maxed seller credit, tax proration and closed on the 1st of the month to maximize my cash and acquire this property What was the outcome?

If so, I'd rather just sell it and not deal with the headache of landlording a property like that and just earn some cash.