They are all on the same sports team and have no "proof of income."

Here is where the strategy comes in:When you move 401k stocks to a brokerage account via an NUA transaction, you pay income tax on the cost basis (And maybe a 10% penalty) but NOT on the gains until you sell. 

Investors purchase income streams, not real estate.What makes an investor agent?

Then, weigh the options: sticking with the current rent ensures ongoing income but might risk tenant dissatisfaction, while offering a reduction can incentivize renewal and save on vacancy costs.

Best case scenario this year between the 2 of them I break even with rental income. 

Income Rose by up to 30% in Some U.S.

First thing you need to do is identify if you are wanting an income play or appreciation play.

@Christian Busch i’m a broker that specialize in income producing properties so I end up working with buyers sellers and tenants.

I'm looking for the legal definition of "paper lots" and was hoping that someone might be able to point me to a good source.

You are charging 10% interest, which gets taxed at ordinary income so you will pay 2-5% state tax on that money as well as your income tax level.