Look up the Howey Test for a definition of investment contracts.Sounds like a really good deal.

Getting a tax pro’s help can ensure you don’t miss out on potential savings.Be Prepared for Landlord Life: Living close to your tenants means it’s easy to handle minor repairs and keep an eye on things, but it also means boundaries can blur.

The end of the year statement the bookkeeper prepared for my taxes this year cut my accountant’s time in half compared to what I had been providing him.

If you meet this first test, you are a REP...now determine if you can use the benefits of it.2) if you or your spouse meet test 1, THEN you can make an election to combine all your RENTAL activities together for purposes of determining if materially participate in your rental activities.  3) So you met test 1, made the election under #2 - now you see if you materially participate in your rental activities. 

Here are a few below.Estate Planning: This is a great estate planning tool to utilize when preparing an investors real estate asset to be passed down to their heirs.

I’m preparing for the upcoming Montgomery upset sale for first time.

There may also be costs associated with setting up the accounting for the shells, and preparing inital shell formation meeting minutes, etc...You will also need separate bank accounts, and a war chest of money to defend them if/when needed.Ask your asset protection attorney vs salesperson for a quote on the cost to defend, and how much it will cost to move title to the shells.Find out if moving the title creates a taxable event for you with the IRS re.

While BRRR offers great potential, it’s important to be prepared for the responsibilities that come with it.

Be financially prepared by having an emergency fund and budgeting for repairs.Good luck!

Be prepared to justify this to the seller, perhaps by highlighting the extensive rehab costs.Rehab Costs An $80K rehab budget on a multifamily property is substantial.