@Desstani R.Recommend you first figure out the property Class you want to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Quote from @Chris C.: Hi I was wondering if I can take profits from a different business (has nothing to do with real estate) to go towards buying houses to help with taxes or would that not work?  

@Daniel WindingstadRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

As a general rule, each entity that files a separate tax return (partnership, s-corp, c-corp, etc) will need its own QBO subscription.

Renters:A-Class: Ideally 90% or more homeowners.B-Class: 50% homeowners and 50% renters.C-Class: Predominantly renters.Land Value:In A-Class areas, land should be worth rebuilding and upgrading.In B-Class areas, rebuild as-is if the property were destroyed.In C-Class areas, it might be better to sell the land if it’s not cost-effective to rebuild.Crime Rates:Use resources like Trulia.com to gauge crime levels.

For flipping properties, travel costs to investigate investments can be deducted as ordinary business expenses, typically reported on Schedule C. 3.

@Srinivas BondadaRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

If you do not have any prior experience I would hire a manageable property by a manage company that has section 8 experience or if you are going to manage them, I would get it in a "C" location or better.  

My plan is to start out by purchasing Single Family Homes (SFHs) in *C* class (and above) areas with a budget of $100K-$200K all in, with the goal of buying, rehabbing, renting, and repeating (BRRRR strategy) for long-term holds.

Regarding A/C it isn't optional here in Texas.