If a lender isn’t responsive during the initial stages, I’ve learned that’s a strong indicator that it’ll be a painful process all the way to closing.

Instead of worrying about taxes at this early stage, it may be more productive focusing on finding the right deal, the right funding and the right contractors.

It sounds like at your age and stage of life you want to create more diversification to preserve wealth.

It's probably worth doing a cost/benefit analysis to see what makes the most sense to do in this case but I don't think buying rentals while renting is necessarily bad. 

@Ross KaneThere are several considerations that can go into the analysis of whether you need an LLC or whether a large insurance policy will suffice.

They don't have any analysis or record keeping. 

The technology i progressing but not to a commercial stage. 

What is the deal/analysis advice you seek?

Purchase price: $1,435,000 Cash invested: $3,010,600 Sale price: $8,400,000 We identified multiple lots around the light rail system in WA, where we felt that properties are going toincrease in value significantly, these lots were re-zoned from SFH to multi-family (MUR35mostly), we have developed, permitted and starting to build: 8849 Midvale Ave N, Seattle – Two combined lots, zoned for multifamily where we built 12 townhomes 23007 55th Ave W, Mountlake Terrace – 7 townhouses in a walking distance from thelight rail station, in planning stages with the city of Mountlake Terrace, WA

Public records will reveal if a home is in the pre-foreclosure stage.