As mentioned earlier, it may be that at first you operate from necessity.

For example, if wholesaling or being a bird dog is a necessity to help you get where you ultimately want to be, then use it as a stepping stone.4. 

Now it has hail damage and looks like a real gem :)  At the time, buying a used car for cash was necessity.

My first rehab was out of necessity on a buy and hold, then a few more to liquidate them.

You are allowed to recoup the variance in the increase in value from where you started based on the necessity to keep it functioning.

As markets continue to rise around me I have finally made the leap to look into Cleveland as it fits my criteria (I'm a cashflow person (appreciation is a plus but not a necessity) and conservative when it comes to what i'm looking for properties in C+ and above working class areas where vacancy rates are not high, tenants are stable, and  listing price is no more than 80k  (cashflowing around 200-300 after all expenses would be a sweet spot).

Sundays is the only time I have to drive an hour away to go shopping for necessities. 

@Rigoberto Medina I would get rid of the membership, it is not a necessity and will save just a bit more money, you still get the same access to most of the features the main thing you miss out on is the calculators which you can really easily create yourself in Excel and probably learn more by doing that.

.- An LLC has no tax benefits.LLC as applied in real life:As a solo investor, it makes sense to talk to a professional to figure out if it's right for my current risk profile, since its usefulness could swing either way, especially with good insurance being a good alternative.And if/when I get into business with other people, then it's more of a necessity, and I should talk to a professional about setting that up correctly.Does that sum it up pretty well?

I can tell you're thinking thoroughly about all the legal necessities of establishing a proper trust.