Additionally my wife has a very well paying position in corporate RE in NYC.

I'm not quite sure how to incorporate that formula into REI.

So just for clarity, you simply recommend going with 50% of gross rent, which incorporates all of those expenses, right?

You can have a regular S-Corp (incorporate and file form 2553).

I own a S corp incorporated in Delware, registered to do business in Minnesota.

At the end of the 4 years I will have converted approximately $60-80k of housing allowance to approximately 25% equity on a 30-year note [minus taxes, repairs, incorporation expenses, etc].Then, the gray-area: I have some cash on hand, and zero debt.

It is not WRONG for them to be issued by landlords, it just isn't REQUIRED.Additionally, if your property management company is incorporated, or is an LLC that has opted to be treated as a corporation, you definitely would not need to issue a Form 1099.

my partner and i have been talking to a cpa and he told us to start up an s-corp to avoid self employment tax which is at about 15% in minnesota. according to him we would 1) incorporate our business 2) file with secretary of state 3) get fed and state id #s 4) file sub s status 5) open bank account 6) buy quickbooks. is this what we should be doing instead of having an llc with my partner?

I would love to be able to incorporate something like that into a lease.

I'm not a mortgage broker, but the MSE desktop underwriter software incorporates changes all the time.