Generally, holding rental real estate in an S corporation is not the optimal method.
One of the primary reasons for the foregoing is a distribution of one of the properties to a shareholder will trigger tax on any gain (distributions from a partnership (or multi-member LLC that defaults to one) to a partner will not trigger tax on any gain until the property is actually sold).
See https://www.therealestatecpa.com/blog/rental-real-estate-never-corporation
