Juggling S-Corp and LLC Multiple Properties Flip Rent AirBNB

[Ming Chou]

Q: If I want to do multiple fix/flips and own several rentals, Should I have an LLC, and a separate S-Corp, with rentals in LLC, and Fix and Flips in S-Corp?

Am a new REI, and plan to purchase several houses each month, some to be fix/flip projects, some to be wholesales, some to be long term rentals, and some to be short term airBNB rentals.

I have heard that rental income properties should be held in LLC for capital gains reasons, and fix/flips should be held in S-Corp for self employment tax savings.

1) I assume setup a separate S-Corp, and a separate LLC if we want to do many different type of deals?

2) So when we sign the contract for the purchase of the new property, we have to know if we are going to fix/flip or hold long term? If we are going to flip it, then buy it using the S-Corp, and if we want to turn it into a rental, we sign the contract using our LLC?

What happens if we were planning to fix/flip and purchased it using the S-Corp, but we changed our minds and wanted to keep it as a rental? Or vice versa?

Having 2 separate entities just seems confusing, and what's the best way to get the best tax benefits of both when investing in many different types of properties?

3) If we buy properties for rentals, we buy them using the LLC, but if we want to remodel them then we remodel them through a construction company in the S-Corp, is that correct?