However, this approach might add complexity, such as additional tax filings, self-employment taxes, and administrative costs.

I’ve worked with investors who have used this approach successfully, so here’s a quick breakdown of what you need to know.First off, you don’t necessarily need to own the property outright to offer owner financing.

Your current approach leaves your PL exposed to any title flaws that might arise.2.

But could a potential approach look something like this?

Therefore, if you have a variable interest rate mortgage, you must budget for fluctuations in the financial market.Maintenance & repairsBudgeting maintenance costs is vital to maintaining healthy cash flow.

Welcome to BP @Cory M.Your approach to starting with a single-family or duplex and gradually scaling up is sound, and focusing on cash flow and maintaining reserves is a prudent strategy.

@Brody Veilleux, I don't think there is anything wrong with this approach in general.

This approach allows you to ease into being a landlord while building a trusted team.

I’d love to hear from anyone who’s been in a similar position or has advice on how to approach this.

While your parents may have experience and a simpler approach, even with just two properties, you could miss out on key deductions like depreciation and interest without professional guidance.