I'm employed now for 8yrs and I just started my paint business.

One way will be wages, subject to self employment tax.  

Both homes are in areas with stable employment for high income earners.

Employ a process for removing the outgoing tenant from the lease and charge a reasonable fee for this administrative work.

For the sake of argument, since my primary work place is where I work 8-5, couldn't I log the mileage for every single trip from my job to property viewings, closings, etc., and back home since these real estate deals aren't my primary job/I don't have a place of business as a real estate agent (belong to a brokerage but have never shown up there) and are temporary in nature (e.g., my client gets into a contract, I show him property, show up for inspection, closing, etc. -- that is only going to last 45 days max usually so I would assume all trips to the property and even from the property to my place of residence would qualify as mileage under the temporary work selection.)

However, from tax perspective, it seems to me flipping houses under an llc or s corp pays more tax due to self-employment tax.

If you research his "employer" I bet he is the owner.  

I could write out some document employing them for free rent but not sure how that might work atm.Thoughts: Putting them on the loan may be silly because I have better credit I believe.

I have been in construction all my life and would like to make the job change from self-employed construction company to owning & renting property.Joe

I currently employ one (the only one I've ever hired), and not sure what I think of them.