@Joshua D Enos I totally get it, everyone has a varying ability to do that strategy based on their life circumstances. 

As stated you never allow tenants to do any work under any circumstances.

That's probably not what you wanted to hear, but it's a facts and circumstances based analysis that's not possible to answer from the information provided."

Correspondingly, all business income taken from an LLC under similar circumstances is subject to self-employment taxes. 

Correspondingly, all business income taken from an LLC under similar circumstances is subject to self-employment taxes.Holding Properties When holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.

However, I agree with your assessment of that being one of, if not the best way to run cap rates, pending no other circumstances are surrounding the property that might not be accurately reflected.

Lastly, I would never hire an unlicensed GC unless it's under extreme circumstances.

I've had a mix of men, women, parents and children, and couples--in other words, normal people. 

Like I said, I have not proceeded any further until I get some context by seeing the camera myself (via pic or in person).Both tenants are good tenants and do not cause any trouble and pretty much keep to themselves (both are single women living alone, FWIW). 

There are PLENTY of shelters, family and governmental assistance to help particularly WOMEN and CHILDREN.