Once the mortgage gets paid off, I get to retain significantly more of the revenues from renting the property out, and I get to keep all of the proceeds from the sale when the time comes.

Allowing her to retain possession with your knowledge (that is accomodating her with extra electrical capacity) to run grow lights is probably worse.You dont have to evict her, but you if she wants to stay, you will have to let her know the dope has to go.

Our general counsel has mentioned that as long the loan is current a transfer to your LLC as long as you retain title to the LLC as well would be fine.I cannot say this for each banker/servicer so I would check with your bank as well as their policies may be different.

Because much will depend on the specifics of your market, I can really only stay general but it sounds like you are on the right track in formulating a strategy to get your rents closer to market and retain your tenants and tenant satisfaction (of course, should one leave, I look at the bright side, a chance to improve the unit, get a new long term tenant, and even up the rent when warranted)..

Additionally you continue reap all the other secondary and tertiary benefits of retaining that property over time.

This shareholder would retain control and you would simply be a member.

B rentals cost more and have a lower rental yield but have better tenants and typically retain their value better.C rentals are cheaper so you can scale quicker but the tenants are more difficult.IMO B rentals with financing are the best choice for the out of state owner.

Would make life easier, but in all reality it isn't that bad being a landlord IF you are lucky enough to get good people you can retain. 

Adjust the commissions/bonus structure to incentivize the desired performance and make it sufficiently lucrative so you can attract and retain good talent.

It will also give him the option to retain the deferred/no income tax state.