Tax structuring and LLC advice you can get for a paid fee too.

We pay payroll taxes and workers comp, we comply with state and federal laws regarding work place safety, PTO, vacation, labor laws et al.

From a tax standpoint, there are additional disclosures to make when selling a business asset for less than fair market value to a related third party. 

Here’s the situation:Purchase Price: $540,000Down Payment: 20%Mortgage Rate: 7.125% (30-year fixed)Monthly Expenses (Mortgage, HOA, Taxes, Insurance): $3,706Realistic Max Rent: $3,000As you can see, I’m currently short $706/month even with max rent.

(I REALLY can’t stand state income taxes.  

Do you have a current need for that cash flow generated from the tax savings?

I'd also add to that that you are paying a 20% withholding tax on gross rental income. 

. - Taxes are on the higher side at $6,000 yearMy Numbers: $115,000 putting 20% of my money $23,000 and finance the rest with total expense of $1,834Monthly expense numbers: Future Maintenance 13% $273 - Vacancy 5% $105 - Property Insurance 5% $105 - Property Taxes 23% $500 - Property management 10% $215 - Office/Travel/Legal 4% $84 - Mortgage 26% $552 - Monthly Cash Flow - $316 per month or $3,792 per year so Cash on Cash = 17%I think this looks like it is a deal worth doing and I also believe I can bump the total rent up by $50 each tenant which I think make it even better.

However, there is no specific holding period contained in the tax code or regulations and there is no "safe harbor." 

I do intend to stay close to home - but home provides only annual opportunities and I’m looking for year round possibilities with tax deed properties.