Then whatever the remaining proceeds, if any, will be then taxed at our ordinary rates.

When reporting on schedule E, rental losses are subject to activity rules which phase landlords out of deducting the losses against their ordinary income.

If you sell the house that you purchase and fix within a year, the gain is ordinary income.

Reading books and listening to tapes and all that other garbage is great and all but it wont really get you anywhere unless you are one of those extra-ordinary folks that takes action.

Whether you think that is great or not is a "slumlord indicator" IMO.I prefer that things remain in good repair and get reported when they are not, so I don't stipulate that tenants must pay for ordinary repairs.

I will tell you that there is no worry about capital gain taxes as you are subject to ordinary income tax on the wages that you should be paid from the entity.I'm going guess that you especially take advantage of HUD properties?

Any gain on the sale is ordinary income, subject to tax at your current marginal rate and self employment tax (SET).

This is just an ordinary lease and gives the tenant/buyer (TB) possession of the property.

I suppose the only thing out of the ordinary is how we want to fund it, and that we aren't builders by trade.

That tax rates is the same as your ordinary income rate, but is currently limited to 25%.