Seller financing is a great way for the seller to avoid a lump sum capital gains tax, and still make steady/expected income on a property even after they sell it. 

Now, I know you were asking about rental income...and that you can find in the comps too. 

If you want the income lending/lending funds would probably be a great option, but there is rarely any equity appreciation.

This means your monthly rental income should be at least 1% of the property's purchase price.

Yes can definitely get 100% financing of the construction no income no doc . 50% of the land cashout to cover closing costs 

I wanted to obtain a rental to gain passive income.

It's a great sign that the tenant is *asking* you before letting his girlfriend move in so you should treat them as any other tenant application: - credit app- background check- income check etc. 

Yes, failure to observe corporate formalities can lead to piercing the corporate veil, but if it was only obeying you, then you can be sued in your own right, in addition to the corporate entity.Then there’s the question of umbrella insurance.

Even though we have a history of rental income at that property and a 2yr lease in place.

If you are audited and the IRS looks at your 1031 and there is only your word against your actions, you're going to lose the audit.I totally get you wanting to avoid those nasty ordinary income taxes.