If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

FHA 203(k) loans are a great way to get into a property, add value, and set yourself up for strong equity when you eventually rent it out.Biggest things to watch out for:1.Contractors & Timeline – The loan requires HUD-approved contractors, and the rehab process can take longer than expected.

There are a lot of people who bought during the pandemic that are now trying to get out. 

@Devakumar Sai Chinthala There are income limitations for passive losses, you should check with your tax professional.What will the property taxes increase to after you buy the property?

Quote from @Matthew Paul: Sit back , let him build the house , and when its done , say " Thanks " You should check with a local land attorney and see what your options are  That's what I say too.

When using a standard LLC, the process is generally straightforward for lenders.

If you're working with a realtor, they should be able to suggest a few.

This requires careful structuring and compliance with IRS rules.Installment Sales or Buyouts – Instead of distributing properties outright, investors can sell or buy out their respective shares over time, spreading out tax liability and reducing immediate capital gains impact.LLC Restructuring (State-Specific) – Converting the corporation into an LLC taxed as a partnership may allow for a more tax-efficient asset distribution.

If you fix the inside of the house spend a bit of money on the outside. you don't have to break the bank but make an effort.  

I have a few questions- "We started an LLC" "We purchased a property" Who are the legal owners of the LLC?