You also qualify as REPS, so your flipping income could be tax-free if you really strategize well.

Tax returns for the property are unavailable………………tax returns show consistently large loses8.

@Lisa Mallory Did you get a tax accountant?

What can be unburdened by what has been.and we shall tax your unrealized capital gains. 

You will usually have about 6-8% of what you purchased the property for in taxes you won't have to pay in the first year or few years.

The caretaker would be required to assume paying taxes and insurance plus upkeep.Both units need a fair amount of work prior to being rentable now that it’s been vacant so long.

Quote from @Bruce Schussler: A lot of Podcasts and Youtuber's say to cash-out refinance to keep rents balanced with payment; (PITI) then use those funds strategically to re-invest either in more real estate or just put into a high interest bearing account or money market account...Here's some of my thoughts and comparisons;Cash-out refinance with new loan so rents balance with payment:- The cash-out refinance is 100% tax free- The funds can be put into a money-market account off-setting a portion of the interest charge of loan- The loan balance gets eventually destroyed by inflation- The liquid cash eventually gets destroyed by inflation - The interest on the new loan can be deducted from the rent income- The refinance costs are 3-4% of the total- There is less equity in the property and LLC that can be attached in case of a lawsuit- The break-even on cash-out refinance with current interest costs on the new loan is around 12 years Vs.Paid-off property with positive cash flow:- The positive rent income is 100% taxable minus only depreciation and property tax- There is more equity in the property and LLC that can be attached with a lawsuit- The break even is not until after 12 years at today's interest rates- There is a rate risk in today's inflationary environment where interest rates on bonds keep rising*It appears to me that the cash-out refi is in the best interest for a property investor; (Dave Ramsey would strongly disagree!)

So as long as your insurance, property taxes, property management, utilities maintenance, repairs, vacancy, and capex come to $4/mo or less you’ll be fine.

Do you need the tax write offs?

For a business doing fix and flips, I can't see how any tax savings can outweigh the additional leverages and costs of vesting this way.Cheers!