@Natalie Kolodij thanks for this.  1) I didn't really consider the "piercing the corporate veil" side of it, just had my eyes set on the less taxes part...2) and right, I don't want to give my tax professional even more work, she already sort of groans at me every time I buy or sell a property and open and close accounts relating to projects, etcI want to avoid giving IRS any frowny faces lol

@Steve Rozenberg You are absolutely correct hopefully this helps someone down the road to help avoid the pitfalls, thanks for responding.

How can we avoid that and make this a deal?

In your next lease, consider automatic increases of perhaps 2% to help avoid the rents falling behind again.  

There are a lot of things you need to know behind it to avoid mistakes that can be costly later on.Once you get that knowledge, yes they are easy to set up and you can do it yourself.

On the whole I would probably avoid that loan if at all possible. 

I would like to avoid any personal drama and just deal with my initial tenant. 

Just avoid 11:00am until noon and between 3:00 to 4:00pm. 

Don't avoid Clayton Morris.

They were inherited tenants soon to be gone & we avoid smokers NOW!!!