Earlier this week we distributed rent increase notices to tenants at a property we purchased a couple of months ago here in Kansas City.

Chris,I sold distribution lumber in Maltby for lots of years and had lots of good contractors come in that fly under the radar. 

There's a greater chance of higher returns, as these funds have overhead costs that need to be paid first then remaining profits distributed.   

If not, do I just take distributions every month to pay that? 

LLC allows un even distributions.. so he gets a fee for each sale in the operating agreement it spells out his job and compensation..

One technique for finding deals that intrigues me is looking up NODs (Notices of Default) in the public records and then reaching out to the property owners (probably via postal mail) to see if they are interested in selling.It seems like there's a decent chance to find a highly motivated seller and perhaps a very good deal using this method.I am wondering if anyone in the forums has used (or attempted) this technique, and if so, what sort of results you've seen.

You've networked with the right people and learned some advanced techniques for investing in real estate in one of the hottest markets in the country.   

You're right, one subaccount is tax-deferred while qualified distributions from the other are tax-free, but the immediate result of the 1099 is the same either way- no taxation. 

The property is part of an estate and it will likely take a year or more to distribute the estate (I'm the executor). 

Have the realtors send you listings, put you on their auto distribution.