Newbie Investor tax strategy

[Neil Schall]

Hello Bigger Pockets,

   I'm looking for tax planning advice for starting out and I want to jump into both fix and flip and rental. I am currently working on a deal for two properties with a private seller who will finance them. One is a duplex that will be held long term and another is a sfh to flip. My goal is to rehab these, sell/rent them, and move on to acquire one more buy and hold property this year. I don't expect to make over 100k this year and I do intend on doing/managing much of the rehab work myself.

   Now that biggest question at this point is: What is the most tax friendly way to do this? I created an llc to run the fix and flip business through and will create a separate entity to hold the rental. I will talk with a CPA with real estate investing experience soon but would like to hear what some of you would do starting out with this deal, assuming you would like to grow your investment portfolio and also do more flips. Is this the smart thing to do to lower the tax burden?

Thanks!