@Steve Hall I’m hesitating because I don’t know what the worst case scenario for s foundation issue like this would cost and I want to be able to allocate my savings towards health insurance/gearing up for my 2nd investment property, not recycling it back into this one.

I'm sure you could do better, but if you are happy and your investor(s) are happy then what's the difference? 

However, I was also thinking of paying myself from some of the earnings as a 1099 employee simply so I would only have to pay self-employment tax on what I pay myself and not all the earnings, so filling taxes as an S-corp. 

There is no salary on rental income( if you dont have S-Corp, which you should not for other tax reason).

@Dennis M.No Newport’s and 40’s?

@Rick Turman Depreciation passes through the LLC to the owner(s) according to the percentage of ownership.

They will then give you a draft set of drawings, front & side elevations and floor plan. 

@Gil Ganz- you should write in to your P&S that the offer driving the escalation clause has to be shared with the buyer as part of the agreement.

My purchase price was 260k for 1920’s style bungalo.

If it is a single member, then by default it will be disregarded by the IRS unless you elect to have it taxed as an S or C corp.If it is a multi members LLC it will be by default seen as a partnership, unless you elect to have it taxed as an S or C Corp.Depending on the status you choose, your state tax treatment will be different too...