I read that doing nothing will result in being taxed as a sole proprietor so I'm leaning towards electing to be taxed as a corporation.

If you have a large company close by and this property type would attract newbies coming in, you may want to scope out that option as a fully furnished corporate rental. 

Should I be creating some type of corporation (LLC/LP) to do this?

@Elise Hazzard,  Most of them work a corporate office job, although the wife of one couple is a teacher. 

I would also weigh what lease the physical therapist is wanting ( how many primary term years of lease, annual rental increase percentage amount, is it a single or multi unit operator with experience, unlimited personal and corporate guarantee with updated personal and business financials, their current net worth backing the potential lease for the guaranty, etc.)The other thing is being there so long the chiropractor might be very well liked in the center with other businesses.

Their check instead of going to Kelly Pierce Land Mogul it will go to New Giant Landlords Corporate Management Team. 

Good day,I am a real estate and corporate/commercial lawyer in Edmonton, AB, CAN. 

Are there any corporate entities involved?

Even if you contribute or assign the property to an LLC, the HOA would probably be able to pierce the corporate veil.Unfortunately, you did not do your due diligence before bidding and are likely on the hook for that balance if you end up closing.

Tenants conveyed stories of rapacious corporate landlords who fleeced them at every turn, from not returning security deposits to forestalling and skirting necessary repairs.