You need to be able to recognize a "deal" have a tool or technique available to implement to literally capitalized on the deal. 

@Nicholas Lohr While I agree that you can operate without LLCs for a time, you need to also recognize that you are investing in one of the two highest litigated careers in the US.

In the scenario you outlined, there are only 2 ways that I can think of right now that they would find out about your misreporting outside of an audit - if this was a commercial client that files 1099s, or if you file a partnership or scorp return and present a balance sheet that includes prepaid rent and is a cash basis return.Cash income is recognized if you have constructive receipt as of the last day of the tax year.

Hi Folks,Disclaimers: planning to live in Brooklyn for next 10 years, recognize that its an equity play, not a cash flow play.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

Recognizing the reality, I include in the Lease, statements that Landlord will take care of the after Move out Cleaning, Carpet Cleaning, etc and put a $ Monetary figure on the deduction for Security Deposit to take care of those Issues.

If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.5.

I recognize I am coming off as extremely opposed to risk, I'm not. 

I recognize this and am trying to build that into my budget.  

It’d just be a situation where we each help each other forward, knowing and recognizing that we’ll all be making passive income, so rates will be low or nonexistent.