@Brian Ellwood I agree with others who say less sophisticated investors misunderstand deal valuation if they are not using IRR calculations.

Fortunately I don't think home warranty companies are as sophisticated as they would like to think, and I definitely don't think most buyers of home warranties are as smart as black jack players.

@Martin RubalcavaAnd Derek is sophisticated Ie Pete Fortunato 'esk with a deed to secure an option.

Over the years I've worked with clients ranging from first time home buyers to sophisticated investors. 

Your money works for you, you get to focus on your social media business and don't have to deal with tenants, toilets, or managing the property manager.Best,However you'll need to be an accredited investor (over 1M net worth or making 200k/year) or at least a "sophisticated investor" to go this route, so this might not be the option, but if you're looking for something truly passive it's definitely recommended.  

I only invest in blue collar housing because that price range has the most buyers and I know I can get the most equity capture for the least amount of money out of pocket.If your a multi-millionaire forget this post because your an accredited investor and can afford to lose 20k no problem.700k you are looking at super sophisticated buyers who will nail you so hard on inspections you can lose your shirt quick.

i'm not familiar with your day-to-day, but most RE investors need a good electrician on their payroll.  

You keep him on Payroll and still pay?

The contractor is on the payroll of my PM (who is also my realtor) so it's an all-eggs-in-one-basket scenario.

If these apply to you, please research more, reach out to me, or consult with your tax advisor.If this is helpful, I will share some tax strategies for Businesses and Real Estate Investments in the coming days- Ashish Acharya, MAcc, CPA, CFP®, PFSHiring Kids: If you have a kid under the age of 18 and you operate your business as a sole proprietor or as a spousal partnership, hiring your kid can have significant tax breaks:First, your business gets the payroll expense deductions to save taxes at the parents level who are in a higher tax bracket.Second, neither parent nor the child would pay payroll taxes (15.3%) on the child’s income.Third, with a traditional IRA, the child can avoid all federal income taxes (around 11%) on up to $18,400 in income.IRAs: First, get a deduction for contributing to a Traditional IRA that can be easily established with most of the financial institutions.