This is the relationship piece that is missed by so many.

However, if actively working in the business, the IRS requires taking a reasonable salary (W-2) before taking distributions.Since this is your first project, it’s a good time to discuss with your CPA whether an S-corp is the best structure for future flips, or if a different entity type (like an LLC taxed as an S-corp) might be more beneficial.This post does not create a CPA-Client relationship.

we ran into this recently.

Everyone today seems to have a course or preach about financial freedom, passive investing, and how real estate provides passive income—but let’s be real, it’s not all rainbows and unicorns.For those of us in this full-time, we know the reality: long hours, unexpected headaches, wearing many hats, getting yelled out and tasks we dread but have to do anyway.

Plus this seems like a classified ad I think.

Hope this helps.

But since you have already taken bonus depreciation while it was an LTR, this may not even be a concern for you.There're other potential complications such as a different depreciation schedule, treatment of previously suspended losses, and so on.

@Kerry Baird this is crazy.

Bad things like this are common.

This is the best way to buy real estate right now.