. - Fortunately, our transparent systems allowed the owner to catch it:)- Full transparency - we would have never caught this honest mistake:(An owner also needs to be involved to approve & fund large expenses: maintenance, property tax & insurance payments (if they want to be more hands off), evictions, etc.A great PMC should also have a chat with you annually about your future plans for a property and your portfolio. 

That immediate tax savings in the new property is better than the infinite tax deferral of the 1031 exchange.

Hi Ricky,Being in operation for 10 years with mid seven figures of assets and NNN leases,it would be wise to speak with your tax advisor regarding if the tax set up should be an LLC, an S-Corp  or a C-Corp.It would also be wise to speak with an asset protection attorney to find out if this is something that might be beneficial to you in that area.

Assuming property taxes + insurance added don't go above $1,100 total, you could maybe make this work. 

This might make sense, but again, you are just deferring the taxes and now pushing tax from capital gains to ordinary income. 

- Unlikely $60/hour3) Even with all payroll taxes, insurance, etc., they are making a profit margin on that hourly charge.Another way PMCs usually make a markup on maintenance, is that they send you all invoices on their letterhead, or from a maintenance company they actually own.

At the same time, someone else reduces your debt, and you get to use the tax code to improve your tax situation legally.  

Almost every REMIC is in violation of it's tax status.

Keep in mind taxes go up as do rents.

For several reasons (property taxes, politics), I would prefer to begin real estate investing somewhere other than locally.