That year of building is probably running galvanized pipe from the water meter at the street sidewalk to the building.Those usually rust internally and start leaking underground.To replace that line with copper can be very expensive especially if the line runs under the parking lot.You would need to cut up the road,take out the line,put the new copper line in,and then fix the road.This can cost tens of thousands to over a hundred thousand depending on length of the run to fix.I would be concerned with a building of that age with hidden problems discovered once the current tenants leave doing TI.Could have asbestos,roof problems,sewer problems with the cast iron system,lead paint,etc.With retail buildings usually have a life cycle of 30 years so they are usually torn down and regenerated instead of a 50's vintage still standing.Regardless if it is a great location and not a dying part of the old town where the growth has moved then eventually a developer would be interested in partnering with you and building new or buying from you outright.You have to really look at these types of deals from all angles and work with someone looking out for your success.Not someone wanting to just "sell you something".I view instead of selling people on things to get one off commissions to instead help them make long term sound purchases.If one is successful then it stands to reason a relationship will be formed and they will buy more off of that success.If a broker/agent sticks someone in a bad deal then later business from them and referrals will be non-existent.Some of these brokers only representing corporations as sellers do not care about the buyers or if they buy right.This might could be a good deal for you.Just think of the multiple exits as much as you do about the purchase.

And you're right, smaller investors will need to personally guarantee any loan in a corporate/business name.You will end up having to do many things where you sign personally but keep it to a minimum, your attorney probably wasn't thinking about lending issues.

In some cases I would recommend a C-Corporation.

I have a name in mind that I would like to use for branding of my corporate rentals.

I don't expect labor/material pricing to get lower in the next 10-20 years but if these home prices don't quintuple or more there won't be any new construction in these urban neighborhoods.Here are a few links about things going on in Detroit somewhat related to accelerated demo of some blighted structures in the city:Detroit to get $300 million in federal help - Sep. 27, 2013 - CNN Money http://money.cnn.com/2013/09/27/news/economy/detroit-federal-help/Ford Foundation donates money to help Detroit manage its federal grants http://michiganradio.org/post/ford-foundation-donates-money-help-detroit-manage-its-federal-grantsBill Pulte: From Home Builder to Detroit's Unlikely Blight Buster http://www.forbes.com/sites/joannmuller/2013/10/09/bill-pulte-detroits-unlikely-blight-buster/Gilbert: Tear Down All Of Detroit’s Abandoned Homes At Once http://detroit.cbslocal.com/2013/10/01/gilbert-tear-down-all-of-detroits-abandoned-homes-at-once/Plan to eliminate blight in Detroit may top $1 billion, task force says http://www.freep.com/article/20131212/BUSINESS06/312120137/Detroit-blight-Quicken-GilbertDetroit bankruptcy judge orders company to stop collecting casino revenue (Access to about $180 million a year that was flowing to creditors from its casinos) http://whtc.com/news/articles/2013/aug/29/detroit-bankruptcy-judge-orders-company-to-stop-collecting-casino-revenue/http://www.freep.com/article/20130903/NEWS01/309030148/Kevyn-Orr-William-Buckfire-depositions-Detroit-bankruptcyFederal, Foundation, City and Corporate Investment Areas in Detroit http://datadrivendetroit.org/web_ftp/Data_Mapping/InvestmentAreas.pdf

. ;-) I'm looking at a corporate downsizing, so it's time to jump in.Tom

Rates for property owned through a corporation were significantly more expensive.

As a C-Corp, you will pay corporate tax and then capital gain rates on your dividends.Capital gain rates are dependent upon your tax bracket.

Are they owned by a LLC, Corporation, Trust, or in your own name?

An LLC is irrelevant for tax purposes, unless you elect to have it taxed as a s-corp or c-corp and the IRS agrees.