The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

The draw back to these loans is that they are more paperwork heavy than the other "portfolio" types of loans....but if you have ever received a loan on your primary home, it's likely that you will go through the same type of paperwork here with conventional lending.

While I understand some of the drawbacks and implications of a 401k loan and the fact that you ultimately still pay tax on the interest, it still intrigues me.  

Each one is going to have it's strengths and drawbacks. 

If you are planning to do both, then might want to have separate entities for each activity.One drawback to S-Corps is that you would have to pay your self a reasonable salary from the S-Corp and that would negate some of the tax benefits of having rentals., whereas you would not have to in an LLC or partnership.

I had ruled out these properties but keep finding good houses where the numbers work and the fireplace is the only drawback.  

Understand how rate locks work and learn to advise your clients on the benefits and drawbacks of rate locks. 

I will check out your website.I am also interested in AZ, but having a state income tax is a drawback for me. 

There is one very major drawback however, you won't be able to impress the average village idiot that you are a "player" because you have an LLC.Please let me know what specific tax advantages there are to operating a portfolio of  rental properties within a legal entity structure that can't be obtained otherwise.

We understand there are drawbacks of purchasing condos especially just the one unit, but we’re hoping for some preliminary insight and guidance on our initial entry into the world of real estate investing.