The days of quick, minimal-effort flips yielding massive returns are largely behind us, but prepared investors with an eye for neighborhood-specific improvements can still achieve healthy profits.The most successful flippers in today's Phoenix market are those who:- Conduct thorough due diligence on neighborhoods and price points- Build robust contractor relationships- Focus on sustainable, energy-efficient renovations- Stage properties impeccably for the target buyer demographicFor those willing to adapt to changing market conditions, Phoenix continues to offer one of the most dynamic house flipping environments in the Southwest.

I would start there because most in your shoes who want to form LLC's aren't conducting the day to day activities appropriately and that is far more advantageous to you than merely forming an LLC.

Did your township conduct a U&O inspection?

. - Conduct thorough due diligence on potential partners. - For Private Lenders:- Vet investors based on their experience, reputation, and past performance. - Clearly define the terms of the partnership to avoid misunderstandings. - For Both Parties: - Use legal agreements to outline roles, responsibilities, and profit-sharing. - Communicate openly and regularly to build trust.

-How do you conduct background checks, and which services do you recommend?

Risk Mitigation StrategiesThorough due diligence: Always conduct thorough due diligence on any property before investing, including inspections, appraisals, and market analysis.    

If he does, and the court finds that such request is reasonable, a "qualified entity" (such as a bank) will conduct an auction, and the owner of the tax lien certificate will only recoup his costs and interest.From what I read in the present forum, the above problem is now present, or in the process of being made law, in other states as well.Now the MAIN questionIf you have stopped investing in tax lien certificates after 2023, was the above one of the main three reasons?

What sort of due diligence do you think you will be able to conduct on the prospective tenant that these investors have not done?

The ability to clearly show that transactions are conducted in a way that proves the separation of business entities is key. 

Recently, I conducted a cost segregation study on the property shortly after converting to a STR (converted June 1 2024), and I want to ensure I file my taxes correctly and legally given this change in circumstances.