Be aware of taxes as well, a flip would be ordinary income for tax purposes. 8)

If it is held less than 1 year you will be taxed as ordinary income.

You will pay your ordinary income tax bracket percentage on the gain.

Then, consider that this is ordinary income and you can count on losing probably 40% to all the various taxes.

If you are going to own the property in your name and have the LLC do the management (collect rent, pay bills, maintenance), then that will be considered ordinary trade or business income and subject to SE tax.You would want an S-corp to do that.

Everything "ship shape and Bristol fashion" as my Brit friends say.charge a relatively low rent No, no, and NO.

sounds like an ordinary lunch that you would take personally and is not deductible.If you had other persons with you and you were discussing business and picked up the tab, then yes it falls under the 50% meals/entertainment category.If you stop by to grab lunch while you are running errands for your business just the same as you would go out and grab lunch while you are working behind your desk, then it does not qualify.The IRS would disallow it.

Nothing stands out on page two that is not seemingly ordinary.

Federal Depreciation Recapture Tax Generally, depreciation recapture is taxed at a flat rate of 25% or at your ordinary income tax rate based on the amount of depreciation taken on the property over the years.

The sale would be taxed as ordinary income.Reinvesting within the year or after won't change anything either way, you will still have to pay the tax on the income.