Here is more info on it.https://www.investopedia.com/terms/p/passive-activity-loss-rules.asp

We make them pre-pay two months rent plus the leasing commission. 

Money in hand sounds great, but my portfolio strategy (even though it’s currently small) is long term buy and hold.

David good to meet you, I am also a David.Have you heard of a creative Contractor( General ) that would be willing to take his labor on a multi unit fixer upper as rent. 

I would rent the extra room(s) similarly to a medium term rental property.

I am wanting to invest 100% into real-estate whether it is flip and sell and/or long term rentals. 

This enhanced financial profile may lead to better loan terms and lower interest rates.6.

The original lease from the owner who owned it at the time it was installed had hand writing on it for payments that increased per 5 year term is what it looked like if I recall correctly.

Here are a few options and considerations:Commercial Loan or Portfolio Lender: Some commercial lenders or portfolio lenders may be more flexible in financing properties under an LLC, especially if the property will be used for commercial purposes like short-term rentals (Airbnb).

I only know about the times where this was found out prior to closing, obviously I have no way to know about the times this shady behavior wasn't found out.Since you get a vote in who this tenant is, and it's retail, PSA that commercial lenders (especially the ones offering the best terms...) are starting to vet deals by how 'recession proof' the tenants are, even if they are currently paying on time.