You'll pay a higher rate and may need to have more of your own money in the deal in case of unexpected repairs. 

If a large repair or tax/insurance hike were to happen with a multi-unit than you at least have other units cash flowing (usually) which helps stabilize such unexpected costs. 

Dave Van Horn is a collegue of mine and I am glad that he was able to point you in a direction that helped you feel better about your retirement planning. 

Despite facing an unexpected $30K appraisal gap.

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).

Keep reserves. 80% of buyers experience a major unexpected repair in the 1st year of ownership.4) Talking with an agent who can help increase your knowledge of the process and owning a home. 

How have you been making payments so far, to a servicer or directly to the seller? 

LA City here~How do you market your rental to insurance companies directly for temporary home placement?

This approach ensures realistic pricing and helps avoid unexpected costs later.Good luck!  

Under the assignment of income doctrine, income is taxable to the person who earns it, even if it is directed to someone else.