After judge Ciro Rodriguez (famous flaming liberal judge here in San Antonio) told me to my face in court that the Property Manager is supposed to hold and account for those funds, we switched policies and now hold 100% of all security deposits in Trust.  

For a business owner with $100,000 taxable annual income, the net tax savings for using an S Corporation instead of an LLC in taxes paid every year can be as high as $7,500.Holding PropertiesWhen holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.

your own ventures," of course this cant be used unless its claimed on your tax return and like the property management income above it needs to be documented for 2 years min history + min 1 year of taxable income showing on your returns (if its self employment income).Regarding your rental income, this is more liberal and you can use this right away if you have leases in place (even with out 2 years landlord experience).

I have around $20k in FWT sitting on my W2 just begging to be liberated.

Feel like I hit the jackpot. 

For a business owner with $100,000 taxable annual income, the net tax savings for using an S Corporation instead of an LLC in taxes paid every year can be as high as $7,500.Holding PropertiesWhen holding properties as a cash flow investor, the LLC (or LP) is generally the better choice because an LLC has more liberal distribution rules.

Being able to tell their friends that daddy buys the houses I tell him to buy is a very powerful and liberating experience for them.

Everyone talks about their first property and it seems to always a dumb luck jackpot or a "I can't believe I did X with my first place". 

The waterfront area of Camden and the area around Rutgers and Court House are about the only places "reasonable" and I use that world very liberally.

I passed them off to other brokers, so I'm not dumping money down the drain, but to be free of their needs and focus entirely on those of the investor has been liberating.