My fun is in rehabbing properties - so far I've only held as rentals but would like to be able to acquire some properties that would make good flips as well.I have a background in construction and my brother is a general contractor - so I get some pretty good deals on vendors and materials (most of his vendors do work for high end home builders as well).For the last 10 years, I've also had my TX RE sales license but have not done too many deals utilizing it.

Before you closed you should have analyzed how long this tenant has been there and payment history.If they pay on time and pay market rent and have been there a long time costs to recondition the property will be high and it will take awhile to get them out at the holidays with the court systems taking time off.I would just moniter it for a little while and see how things go.If it's a small dog usually you don't have to worry unless a bite history exists with animal control.If it's a big dog or aggressive breed you definitely want them out as you could be sued and held liable should you not take action and an incident happens.

Thanks, guys.Steven- So if I bought and sold a flip within a year it's considered business income, but if it was held longer than a year it would be considered a long term capital gain?

So, I don't believe individuals should somehow be held to a higher standard than businesses that makes bad investments.

The LLC protects your IRA from outside exposure, as does the ERISA protection enjoyed by a 401K (ask OJ Simpson about that).To the degree that each asset is held by the same entity within each plan, all are vulnerable to inside creditors (i.e. your slip and fall example).

In order to qualify as long term it must be held one year and one day or more.

I held firm at 235.

I think a lot of this will depend on the way you held the deposit and how your lease is worded.

I held the deed in my name and used a Land Contract where I dont' have to record anything, I believe.I'd appreciate any direction in this area and thank you in advance.

There WILL be policy change coming on housing for owners who have held there own, good payer relief, it is so politically charged that it is a certainty now.If you can hold it a-ok, I would strongly urge you to wait for the relief policy that will be coming soon, then take advantage of it.