If I decide to sell a rental property, my understanding is that my accrued passive income or loss on the rental becomes active income or loss. 

This creates two loan payments ($100,000 of equity and $300,000 on the new mortgage).Key NumbersHome Equity Loan Interest Rate: 6%Mortgage Interest Rate: 7%Rental Income: $3,000 per monthExpenses (management, taxes, insurance, maintenance): $800 per monthIncome and ExpensesMonthly Rental Income: $3,000Monthly Expenses: $800Monthly Mortgage Payment: $2,000ExplanationThe investor earns $3,000 in rent each month.They pay $2,000 on the investment property mortgage and $800 on other expenses.This leaves $200 profit each month or $2,400 per year.However, you have to pay $6,000 interest on the equity borrowed.This leaves you with an annual loss of $3,600.This example shows that while the rental property generates positive monthly income, the interest cost of borrowing the initial $100,000 results in an overall annual loss.

This is the problem I observe with most when in comes to entity formation and asset protection. 99% of the individuals who post questions in these forums are for some reason pushed to believe they should at least research entity structures that are completely unnecessary.

Transferring your current property to an LLC typically won’t result in a tax gain or loss but could trigger transfer taxes depending on your state.

ROI is important but I also want to avoid unnecessary headaches so looking for at least a B-/C+ area. 

. - M: the alteration request is 100% refund for unspent nights, which is not in line with the cancellation refund policy and would leave me at a loss.

As such I am able, over time, to generate a higher ROI, but with some absorption of losses along the way.  

It's very misleading..I would suggest that no one should believe the claims of the programs they have..I am however devastated by my loss and was hoping for some kind of pay I worked hard to find almost $100k in surpluses and now I'm finding out I most likely will never see a payout..I have been struggling for a year trying to hang in until I got paid from them..just want people to know it's not what they claim

@Landon Lehmann many investors borrow against their primary residence equity to invest.Getting a HELOC can also be the path of least resistance and cheapest.There is risk though, that if you investment results in a loss or lawsuit that you could lose some or all of that money and more (lawsuit).Getting more insurance is typically easier than setting up an LLC and meeting all the requirements to separate your business from your personal assets.What are you doing to source potential flip properties?

Taxes - document your losses (actual cash out, lost rental income etc).