Oklahoma did well enough that it may be a good re-consideration of my strategy (which has never included Oklahoma).

I think you are kinda missing the point.Capital Gains tax rates are a good thing..I believe over a year they are still only 15% for most people + Whatever your state tax rate is on Cap gain.Even short term Cap gain is better than ordinary income bc you don't have to pay self employment taxes 12.xx%If it were taxed as ordinary income it would be considerably higher depending on your level of income.The only legal way to totally avoid taxes is to do the 2yr primary residence thing.

The building, however, must meet the height and area restrictions for a residential use of the intended construction type.

then to create another division beneath it for property management and potentially retail sales.I don't have any partners for the primary brokerage, but it may be a consideration in the future.I'm not sure what to set the company up as in Indiana...

There are a lot of little details that many people never take into consideration when vetting someone.  

There are a lot considerations that go into deciding on which state is best to incorporate in, the type of corporation to use, etc., it's really better for you to speak to your accountant or someone that understands your specific situation to advise you on this. 

Having been in their shoes, I did everything I could to be considerate of their work flow.  

If it does not now is the time to request it for any rent reduction considerations.

Having said that, she can argue that she offered rent and you owed her due consideration which is tenancy.

@Sandeep Anand investing in individual notes is in and of itself a considerable niche in real estate.