The steps, licensing, regulations and everything are much much higher on option 1, however obviously would add a larger target market

These areas are not overly regulated yet, with the most restrictions I’ve run across so far being they can only STR for 120 days a year, or the rentals have to be a month at a time.

Ensure the property is tested and, if necessary, remediated by professionals.Permits and Code Compliance:Building Codes: Ensure that the restoration or rebuild complies with current building codes and regulations.

(The fact that many of these companies are not regulated custodians but unregulated administrators is a different topic, but something you should understand, research, and be wary of.)

Investing in New Builds: Considerations and ProcessNew Build Investment Options:Build and Sell (Fix and Flip):Pros: Potential for high profits with modern appeal.Cons: Requires significant upfront investment and market risks.Build and Hold (Long-term Rental):Pros: Attracts quality tenants, potential for higher rental income.Cons: High initial costs, market fluctuations.Process Overview:Market Research: Identify high-demand areas.Land Acquisition: Purchase suitable land.Design and Planning: Work with architects and obtain permits.Construction: Oversee build quality and manage costs.Marketing (Fix and Flip): Highlight new features to attract buyers.Tenant Management (Rental): Implement thorough screening processes.Advice:Educate Yourself: Understand local regulations and market dynamics.Risk Management: Prepare for potential delays and cost overruns.If you have any other questions/just want to discuss feel free to reach out to me directly!

This new regulation aims to increase transparency in the real estate market and protect buyers from potential issues with recently renovated properties.As a fix and flip investor in California, I'm curious to know how this new legislation is affecting your strategies and operations.

There are strict rules and regulations in Shaker Hts. and a lot of the other cities and suburbs.

Establish the LLC for accounting purposes but don't move the property into it?

STR regulations and taxes are becoming harder there, and properties are pretty expensive!

Know that once a grouping has been established, it must remain for all future tax years.A third way is to have your spouse qualify for REPS status.