They are not really investors but speculators.Micheal  its totally apples to Oranges  when i got into this game a century ago or it feels like that.. investors did not buy SFR's per se like they do in droves today.. and from my cheap seats.. all the new construction we build not a single property goes to an investor.. price is the price and you get to the price by cost plus profit and profits are generally 10 to 20% of gross sales prices as your cmpeititon backs into it the same way.its only the last 20 or so years were soup de jour is getting rich only rentals and the easiest way to do that is buy low value SFR.. beginners can t start generally with 2 mil apartment complex.. but they can a 75k SFR.. 

There was no “trade” per se, but as long as it was done within the time limits and certain other specifications were met I did not pay 28% taxes on the sale of my KY property.

@Trent Lee Always best to start in your own back yard, per se. 

Details: C-class property in a C-class neighborhood in SE Virginia 3/1 SFR: $37K to acquire and $30K for rehab (redoing just about everything). 75K-85K ARV $750 a month rent, 12% vacancy (property manager tells me 8% is more likely but I want to be conservative), 10% property management, 7.5% repairs, 5% cap-ex, all utilities paid by tenant, property tax adjusted to an ARV of 90K. 

You will be subject to SE taxed if you do so, but then you can fund retirement. 

If you have suspended losses because expenses exceed rental income and your rental activities are per se passive per IRC 469, then those suspended losses are not lost but merely get carried into future years, whereby they may offset income.

I see you’re in SE Michigan, which is an area I’m familiar with (went to UofM, Go Blue!)

Others don't have seasoning requirements per se, but will lower LTV, raise rates, etc. based on the amount of time that you have held the property, or properties in this case.2.

If you rented the property after rehabbing it, then you would be considered a landlord instead of a dealer and save on SE taxes. 

Rental property is not subject to SE tax, so putting it into an S-Corp to save SE taxes is not necessary.