The daughter might have a situation where the parents decided to stop or reduce rent payments in the future.

First idea :What are your friend /family situations like ??

I am simply stating what I would do if I were in your exact situation. 

As far as an s-corp, it is not usually a good idea to hold rentals in one, as there are issues if your strategy changes in the future.S-Corps may be beneficial if the income you are producing from real estate is ordinary income and subjected to self employment taxes (like flipping homes, wholesaling, property management).Be sure to talk with a CPA that knows your entire situation before making this decision.

My poor wife is a stressed out wreck lol.

I wasn't too sure of your family situation.

If the numbers work and you are confident you can cover the cash flow in a bad situation then do it.

What situation is he in that is causing him to not be able to make payments?

It will save your pocket book and stress levels.

However, one thing I would add is that, when vetting a Sponsor/deal, their acknowledgement and analysis of a "bad" situation is certainly welcome.For example, a sensitivity analysis that supports say a 2-3% return even if occupancy and rents don't come anywhere near projections, is still relatively attractive given potential returns on other investment vehicles.If a Sponsor you're considering is all rainbows and sunshine, I would take that as a red flag and move on.