This all depends on the numbers and I suggest a tax advisor.

Pm, property taxes, insurance.  

While acknowledging this issue, my primary concerns lie with the potential ramifications on increased property taxes and insurance rates for my properties.

Previously, I had been working two big corporate jobs, mainly in a back office accounting/tax function; however, after a series of life events, I realized life was too short to spend your days doing work you despise, plus, the money I was making at my 9-5 was not that exciting.

Of course when you look downtown the home prices get much higher, however, there is a historically redlined area, that is still very close to downtown, and just because it's on the west side of the freeway and houses are less taken care of, you see homes for less.Developers are quickly snatching up properties because of this reason and because recent zoning laws have done away with single family zoning, so I'm feeling a sense of urgency to get into a home in this very specific neighborhood.I'm not a super personable guy and feel strange knocking on doors, so I started digging into delinquent taxes.

They can be written off in one year depending on tax law updates. 

All of this said, my partner has seen a ~41% internal rate of return on her investment, excluding tax benefits, in just the 6 months we have owned this property.

From a purchase and tax standpoint, I would operate the business expenses as usual in the name of the LLC as previously done.

There's generational wealth transfer and tax considerations as well to consider as these types of transactions can by synergistic if done properly.

Then, since they are now a 'legit' operation, they also will typically have their employees legal...meaning they have Workers Comp and a labor burden.