You're in a good position and there's nothing wrong with the strategy you described.

Side note: I can cover about 90% of the lease with the two other tenants - the tenant described above was an inherited tenant from the previous owner (never will do that again) and is paying way under market rent, just not sure how much of a process eviction is in Elizabeth. 

As far as I know, you will have to allow the city to inspect any unit you plan on renting once every 3 years or with any change in occupancy to obtain a certificate of habitability, as described here: https://ecode360.com/4243371This registration requirement is indeed new.

First, when you describe "market", I assume you mean the global economy. 

You should start getting referrals for an attorney to help you organize the structure and language for your described arrangement.I would absolutely recommend the Investment LLC be 100% separate from the construction entity.

Everyone here will try and sell you something based on what you're describing.

I have not read the book but I have done many sub 2's over the decades and for us it was just a standard purchase contract and when it says additional terms we just described that we were taking title subject to the existing debt or which debt would remain on title.

Based on what you described you will be incurring significant expenses renovating the building.

I believe that is the baseline goal for every investor.I've been scraping over Google and this forum for a post/thread or an article on an, “investor’s depth in their ability to buy” (Best way I can describe it).

The child LLCs just need to be completely disregarded and 100% owned by the S-corp.Teach me how you did what you just described.