However, interest on the same debt used to pay personal living expenses, such as credit card debts, is not deductible.But, wait there's more... 

It sounds like a good option, especially since my bank offers it.

Personally, I analyze the residential units as guaranteed income and don't look at the commercial space at all.

Great question 1)  tenant is a serial killer (or similar 2) tenant is psycho and tries to sue me personally thinking I may settle and avoid litigation fees.

If the trust is what is called a "disregarded entity" (meaning it does not have it's own TIN and does not file a tax return) then the activity of that property is reported on your personal tax return. 

PS Only T-Bills and FDIC Insured bank accounts are riskless.

In my personal opinion this is a very small issue that can be easily handled in a Saturday afternoon Congrats on having 2 rentals in this market!

I think this may be bank specific. 

The property has been reported on the deceased's personal tax return. 

I'd always recommend flying out to where you plan to invest to get a feel for the market and to meet your team in person.