The tax code can seem daunting, and navigating it is a scary undertaking for small business owners and entrepreneurs across the country.

It would involve the following test.(1) whether the company was adequately capitalized for the undertaking; (2) whether the LLC was solvent; (3) whether LLC formalities were observed; (4) whether the dominant member(s) siphoned company funds; and (5) whether, in general, the company simply functioned as a façade for the dominant member(s).The failure of a single element of the test is generally not considered enough to justify piercing the corporate veil.

I would strongly advise against undertaking capital improvements with only a lease interest.

Right now I'm seeing small MF B-class assets trading at $125k/unit...so, you are at close to $4m...if that is your price point you can probably find twice the value in a secondary market outside the city....when you dip into C-class you can find a better bargain, but the turnaround story may be a very difficult undertaking...

Meanwhile, the second property might result in breaking even on the refinance without additional cash back, but it offers a quicker remodel with lower overhead.Personally, I would advocate for a slightly higher upfront investment to undertake a smaller rehab and ease into the process.

We are not new to the game, but the undertaking we are considering is definitely out of or real of experience, maybe even our comfort zone.

Keep in mind I will be doing 80% of this work myself over the next year or so allowing me the opportunity to get more acquainted with rehabbing a property myself and boost my confidence in undertaking the next big project.Thanks for any advice, been listening to Bigger Pockets for over a year now and excited to take my first big leap!

I understand this is a big undertaking, so I am taking the year to read up, save up, and have a good plan going into 2025.

Yes, it seems there a few details I will need to figure out to make my decision to undertake this project or not.

He burns through a third-party property manager ever 2 years or so, and, even with the management companies, he constantly bemoans the amount of involvement he, as the owner, must undertake.