I don't pay myself or my wife any salary, my business tax return claims a profit or loss, and that is my taxable business income for the year, which this past year of 2019 had a slight loss, while 2018 had a small profit.So I have no payroll, just 1099's to independent subcontractors who do not work for me on a regular basis.And I have no payroll to ourselves. 

So the cashflow is low.I use to install payroll systems, and wages in the Southeast are not good. 

Have said accountant set yourself up as a salaried employee and have them run payroll biweekly. 

This is much harder than single-family since the buyers are much more sophisticated. 

Jordan,As a professional property manager with over 1000 units, that 8-10% comes out to about $3 to $5 a day to pay for technology, staff, rent, insurance (which is outrageous), MLS (also outrageous), lockboxes, gas, telephone, software, computers, inspections, payroll, taxes, health insurance, I could go on and on...... but its not ok for us to make $3 to $5 a day to care for one of your most important assets 24/7, 365.

I was approved for a PPP loan using my 2019 outgoing 1099 contractor payments who fell under the intitial guidance of being considered "Payroll." 

So assuming you hide the rental income, which is easy through a business structure and a couple of payrolls/accounting work, but how will they know?

They make you feel sophisticated and all, but the real challenge is to make that $20k on a flip.

Are any of you putting young kids (5) on payroll?

The downside is that these are open to accredited investors only.506(b) offerings can be open to a certain number of non accredited but sophisticated investors.