I found a big lot in Splendora Texas. but the owner tells me I can't develop it because it is in the floodplain.

The previous owners had inherited the property and realized they were in over their heads managing the apartments.

I have 5 properties/15 units (4 SFHs with 1 local, 3 out-of-state and one 11 unit local with co-owners).

The previous owners had inherited the property and realized they were in over their heads managing the apartments.Long term goal is buy and hold for cashflow.

However, it is one that I've seen come back to bite many property owners.

Will it be sold to an owner occupant or investor?

If you want to operate as a co-host, you'll need the property owners name on the lease and the rent payments need to go directly to the owner.

Owner-Occupied Property in Texas: Will I need a property management license if I owner-occupy the property in San Antonio, Texas?

What I am unsure about is if the whole 60-40 rule around payroll deduction vs owner distributions within an S-Corp can still apply in this situation if the filing entity will only be the S-Corp but the payments are made out of LLC #1, the disregarded entity owned wholly by the S-Corp.

Offering owner financing can expedite the sale of your property.