You, as the property buyer and payer of the note, need to ensure that the monthly payments are affordable based on the rental income generated from the property.The terms of the note (interest rate, monthly payments) should be structured in a way that aligns with your rental income and financial capabilities.We can go over how to do this if you would like.

Rent Out Their Home: Prepare your parents' home for the rental market to generate income.2.

Account Closedsome questions for you and things for you to think about:-are you trying to generate capital to invest with? 

By default, a multimember LLC is taxed as a partnership.There is an opportunity to be taxed as a corporation(C or S) if proper elections are made.Just a reminder that an LLC is required to file a partnership by March 15 of every year.The partnership will generate a form K-1 that is required to be given to each member which is then used to complete their individual tax return.

From an asset protection perspective, it is important to note that an LLC is a very efficient legal tool to hold and manage investment real estate and to isolate the risk it generates.

If you're not yet aware of this niche strategy whereby you can leverage your real estate assets (single family, multifamily, hotels, etc.) to generate significant long term cashflow, this is the podcast to watch. 

I work with a significant number of hotel entities, I can address this from a tax perspective, I'll leave the liability issues to the attorneys.The lessee / lessor entity structure can be used for a few different tax reasons:1) There is a REIT investor - in which case they can only have "Rental" type income, while hotel operations generates "Ordinary" income. 

You might do some to generate cash short term and others as long term investments.  

Overall, I had a decent experience throughout the process as it generated good passive income and my involvement was minimal.However, now that I have more time at my hand, I am interested in making the process and my investments more optimal in terms of cash flow.

But note investing definitely works, if anyone is looking to get into it.My best deal was purchased for $13k and generated about $170k.