@Henry Clark I am currently going through old threads on this topic, and your information is great. 

If you ever listen to the BiggerPocket many podcasts, this topic comes up often.

This topic has been beaten to death.

Hey Chris,Here is a multi-family meetup that you might be interested in:  https://www.biggerpockets.com/forums/521/topics/1191976-my-r...

You can click on the magnifying glass in the upper corner and search previous topics. 

Just like you would do with any non-family contractor working for you:- get them to complete Form W9 for you, as you will need their SSNs- have them provide receipts for materials/supplies and keep those receipts- have a written labor agreement (how much and for what) - pay for materials separately from labor- make all payments electronically rather than cash so you can trace them- pay out of your business account, not personal- issue them 1099s next year if you paid them $600 or more for labor (for the whole year, not per job): https://www.biggerpockets.com/forums/51/topics/1167632-expla... 

those OOS numbers look great on paper... but this can happen:https://www.biggerpockets.com/forums/963/topics/1195280-expe...https://www.biggerpockets.com/forums/48/topics/1193623-rent-...i want to be clear - i'm not saying OOS is not possible, or a bad idea. 

Great first post and topic.  

I listen to lots of RE info and I think Ken is spot on almost every topic he covers. 

I hope this information is helpful, and I would be delighted to discuss the topic further with you!