We run a Real Estate Notes Show where we speak with many of these types of investors teaching them different strategies. 

This system is called online TIN matching, and you will have to sign up for IRS eServices in advance and share your personal information in the process.My contractor says he is a business and does not need a 1099He is wrong.There is an exemption for corporations, both C-corporations and S-corporations.

Be mindful of recapture tax when selling but consider long-term strategies like a 1031 exchange.This post does not create a CPA-Client relationship.

Escrow is where you hold the security deposits and advanced rents. 

Thanks in advance for any advice. 

Thank you all in advance for your feedback, wisdom, and tips. 

As long as I understand the risk and mitigated the risk with sound exit strategies, I can let people live in my properties and I haven't had any losses yet.

Used houses in the area sell anywhere from $75-125 a square foot.These are long term rentals that I do not plan to sell.I am reading the Rental Property Investing book and implementing the method that focuses on cash flow and that strategy states you need to have $300 cash flow per month, per property.

@Jeanette LandFrom my experience working with over 400 investors, growing your portfolio with limited capital is absolutely achievable with the right strategies.

As raising rents often comes with an increased vacancy exposure risk with renewals, it may not always be the best strategy.