I also don't like to deal with tenants who live paycheck to paycheck, that is not a judgment on such people, merely that I can't take the stress of being unsure if I'll receive the next month's rent or not.- I am net positive on my cash flow, but it isn't much, all if it is put back into the property maintenance and upgrades to keep the properties current.

If he’s merely acting as the lender on the deal, the income (interest) he receives will be taxed at his ordinary income tax rate. 

I was merely stating the fact that a realtor is not needed in this case.

It is apparently more than any mere mortal or even most accountants can handle. 

It is apparently more than any mere mortal or even most accountants can handle.

This, in combination with @Jaysen Medhurst's excellent point (taking 10 - 15 yr loans is not the best idea, no buffer to fall on) makes me re-think the plan in a different way...I'm thinking what I probably need to do is:- Start with value-add investments in Class B multi-families on 30-yr notes asap- Goal is to move up to $1MM+ properties, to utilize cashflow for college education & retirement in 8 - 10 yrs, just as the kids are hitting college ageFallback is, of course, to use student loans in case of any bottle necks that are faced.

BRRRR is merely a strategy to accelerate your growth and "slingshot" the equity growth without waiting on natural appreciation to do it for you. 

There are very limited fact patterns in which an S Corp makes sense, but I would never advise an S Corp merely for lending purposes.

Otherwise, it cost nothing because I filed an affidavit of exemption form along with the grant deed verifying that the property wasn't actually changing ownership, it was merely a "change of name due to marriage", which exempted it from the normal fee.It was really quite easy to do. 

If you cared to look at any of my other posts you would know that this question was aimed at bringing up the discussion, rather than instigating aggression.Nevertheless, the fictitious numbers that I brought up were merely an example to illustrate the fallacy of using a rule of thumb, such as the 1% rule.Thank you.