I am putting in an offer on a 5 bedroom mansion-style house and was thinking to finish the basement and add in a weight room.  

I cannot say if you should move your rental to a legal entity or not, but I can say that a legal entity if properly administrated can offer you additional personal liability protections. 

I want to teach all of my daughters the important things in life, like the importance of a persons mindset about what they can accomplish and how hard work is its own reward beyond the monetary return.Wealth is a consequence of passion properly executed.You can quote me on that.

I think its a great idea as well, if you have proper boundaries set with tenants.Also, if you see them over there hauling out trash, offer to help carry stuff or use your tree lawn.I would put the 'bug' in there ear sooner than later though, otherwise they'll make other plans.

If your business entities and trust(s) are properly structured, your history as a past owner does not have an impact when someone is seeking to find the human behind the owner(s) of any specific property, as far as I know.

Can someone please show me where to find help in the proper documentation, contracts and deal structures that would be of help? 

Hope I understood your comments properly Jeff

Long term appreciation won't likely be as good as LA proper.

Sounds like you didn't have a broker involved to help you price the property properly in the first place. 

I'm looking for a GTA/Toronto based real estate lawyer that is experienced to help build partnership contracts and make sure my business is set up properly.