That's the down side to consider, but depending on your area of influence this aspect can be quickly disolved.

Plus, I think I could get closer to $1.5 today but I am still waiting for the new appraisals to be done.If we sold them, I have considered becoming a hard money lender to see if I like that aspect of real estate.

The other aspect is while some deductions and strategies might be legal they GREATLY increase your chance of an audit.If the payoff is small then risking an increased audit for the small gain might not be worth it.You need to have this discussion with your tax professional.no legal advice

This would help us nail down one aspect of the equation.

When purchasing a MFH to B&H, to me there are several main aspects:-- Getting property in rentable shape/rehab-- Tenant Selection & Management-- Financial ManagementAs I just completed purchasing a 6 family 2 days ago that is already rented and needs little work, my attention is focused on Financial Management.

If you try to break it up in parts you might be able to make better sense of it all.First of all there is the financial aspect.

OTH, if someone doesn't pay miuch attention to their business, they operate in a care free manner, are often negligent in other aspects of life, then doing all you can do to hide out might be a good way to go.This public liability razz is way over hiped IMO and insurance is your best solution.Hey, not implying our OP is paranoid, I know he has good reason to be concerned from other posts, but don't take legal advice from a CPA and don't ask your attorney to set up your accounting systems.

Now it seems as though there are some other aspects of bird dogging that i hadn't thought about.

There is nothing new in RE, there are ideas, but I suggest you strive to learn all aspects of real estate and your own ideas will come in a given situation.

You can always get a property manager to help you with the day to day aspects but you have work those numbers into your returns.