The LLC is taxed as a partnership, meaning it's a flow-through entity, and it issues K-1s to each member.

If you should decide on rehabbing instead you should consider the HUD 203(k) loan.

If your fico scores are 680 or higher conventional financing will generally be less expensive that way you can manage your cashflow more effectively month to month.As for the rentals you can cash out up to the 4th mortgage 75-80% of the market value of those units however it may not be so prudent to do so because if the value is only 50k 80% of that is 40k then paying 2-3 k to close each one can be very expensive.

Here ya go, @Ben Craver - (thanks @Gerald K. )The Real Estate Agent's Ultimate Guide to Working with InvestorsAnd welcome to the site Ben!

But again once you pay a $240+K mortgage and now like $360/month in taxes and insurance (Which I didn't say in the condo example since your HO6 would cost roughly the same as his renters insurance) you are again at around what market rent is.

A poor risk type borrower can't really obtain insurance to cover their deficiencies to my knowledge.You'd probably be better off seeking a guarantor that can cover the deal. :)

You mean to cover the costs of the sale and 3 or 4 K after years of holding it?

Originally posted by @Claudette K.: @Kathy Armstrong: Is there room for 1 more?

A simple simon, thanks for the laugh @Rob K!

Mehran K.