The worst PM imitation I ever had the misfortune of employing for any property

Have you verified her 3x income with the employer?

LLC orS-Corp.Don't be in the wrong type ofentityFirst – Asset protectionbenefitSecond – Tax savings benefit Rental Real Estate – 1031(same in LLC or personal name)Syndicate - 15% or more in taxsavings, self-employment tax (flippers may use this) Expenses for write off &deductions: equipment & appliances, home-office ($5 per sq ft.), travel costs (related tobusiness), kids (income shifting by payingthem to work for you, meaning business related), membership, conferences &education, meal expenses for business, retirement strategies (selfdirected investing, tax-free or tax deducted, 401K/IRA)depreciation Pro-active Planning / Get a taxadviser Talk to your tax adviser inadvance Fire OutOrganize expenses, listquestions, changes (buy, sell, etc. properties.)Changing entity type from LLC toS-Corp etc.

Do they do an employment and income verification?

You will eventually want your nonpassive income to be flown through an S corp so you can lower the amount you pay into self employment tax.

The impact on w-2 happens if you're contributing to an employee sponsored 401k plan with that employer.  

The worst PM imitation I ever had the misfortune of employing

I consider the business form of LLC vs Self-Employed to do rental business.

If you don’t possess, or don’t YET possess those abilities, then stay away from creative transactions, unless you employ someone who does have those abilities to respresent you.  

Your CPA should be able to guide you how to categorize all your expenses so that you can do it correctly yourself.https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#:~:text=The%20de%20minimis%20safe%20harbor%20election%20eliminates%20the%20burden%20of,is%20properly%20deductible%20or%20capitalizable.