This and the Family and Medical Leave Law come to mind.

Typically, a friends and family round can use the Rule 504 SEC exemption if it follows those strict rules, but it will also need a state-level exemption for any states where an investor resides.As you can see, it's more complicated than simply taking people's money.

A Solo 401(k) is specifically exempted from tax on UDFI in real estate projects.The bottom line is that your proposed strategy is possible, but is more complex.  

I am originally from Republic of Moldova, I am a real estate agent with Keller Williams Realty and my wife, Roxanne, registered nurse is from Philippines, we moved in here in December 2018, due the fact that my spouse got a job  at Cape Fear Medical Health Center Job, one of the greatest medical facility in Cumberland and Hoke County, North Carolina. 

As an LLC, you could lose any homestead exemptions for property taxes.

@Adam UxleyFirst - you want to determine if paying wages is necessary.The great thing about real estate rental income is that it normally is exempt from having to pay FICA taxes.Being exempt from having to pay FICA taxes is good because that is 15.3% that you are saving in self-employment taxes(the savings can be less if you are above or near the social security base).'

Been doing this since 1994 and have only seen one lender pursue due-on-sale clause when an investor transferred a property with a FNMA/FHLMC loan on it to an LLC, and that was Flagstar.FNMA now allows transfer of deed to LLC if mortgage originated after June 1, 2016 and original borrower owns a majority interest in the LLC and any 12 months of owner-occupancy is first met.https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/Part-D-Providing-Solutions-to-a-Borrower/Subpart-D1-Assisting-the-Borrower-with-Property-Related/Chapter-D1-4-Transfers-of-Ownership/Section-D1-4-1-Information-Relating-to-Transfers-of-Owner/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer/1041300841/D1-4-1-02-Allowable-Exemptions-Due-to-the-Type-of-Transfer-09-09-2020.htmIn the meantime, hiring your LLC to be your PMC is a good idea.

@Caroline Gerardo  Supreme Court ruled on a case in 1983 and was subsequently written into law that a due on sale related to estate planning grantee is an intervivos trust is exempt from enforcement of lender's remedy under a due on sale clause. 

@Ned CareyMy attorney has said it’s a new Interpretation and is even being done on tax salesHere is what I found about 15% (staggered rate but non exempt entities are 15%) https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/InheritanceTax/Documents/rev-720.pdf

Also unless your payment to your son’s portion of the mortgage is more than your life time exemption, you don’t owe any gift tax.