Come on bro , it’s 2018 That is like saying I had a soup sandwich for lunch .

It seems that majority of people lease option the house, so they create a sandwich lease, but what if you want to hold the property?

Then adding in a sandwich lease option deal on top will get pretty complicated.  

But if your plan is to just assign 1 or 2 to get the hang of it and get build some reserves before getting into sandwich LOs then you shouldn't have to.

@Malia Irvine, Ever heard of or look into sandwich and/or co-op lease option investing?

Has anyone done a sandwich lease option in Buffalo?

I love em because they work at any point in the market cycle (about to get even better with the market cooling off) and you don't need lending or any capital to do sandwich lease options and if you do get a home at wholesale pricing (70% of value) you can then purchase it with private lending for usually 1% above prime rate to still mortgage it medium term (<5 years) and make a larger profit when it closes.

A flip is a business, so it is subject to ordinary income tax.The IRS does not care if you buy a house, improve it and resell it or you buy bread, mustard and lunch meat and make sandwiches - to them it is the exact same business model.You can search the vast number of writings I've done on this subject on Bigger Pockets.I agree with your CPA in all aspects and here is why.Running it through an LLC:  If this project comes in at a loss, how is your investor going to prove out their share of a loss or report it? 

I would like to do a Sandwich Lease option.

But if you are looking to grow your portfolio fast I would focus on Sandwich Lease Options and Joint Venture money partners.