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.

What data source determines the property class?

While the initial years might not be financially lucrative, the knowledge and skills you acquire will be invaluable.

I got an extra $30K in value out of it.Appraisers don't use the PPSF because it is grossly inaccurate, despite common belief.

Luckily for Grocapitus if you invested in value add in last 3-4yrs.

It uses the same data.

Luckily the property hasn’t gone down in value so the lender lists it for $400k and gets it.

Your expertise and advice would be invaluable as I begin this exciting venture. 

Hey Nathan - this is the million dollar question.I would take a look at all of the MLS data sites (zillow, redfin ect), fb groups / marketplace, craigslist, and other marketplaces where FSBO properties are listed.

-Even if reclassified as real estate, it would still be seen as manufactured or mobile home, and would not appreciate in value.