***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

We benefit from deductions as individuals, without an entity (c or s corp’s).

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

Do we need to use entities (like LLCs, C or S-corps, etc) to overcome  this?

That last thing I want is to break even so I have to bet on home price appreciation.

I never bet on appreciation or rent to family.

It’s expensive but covers in one coat & is durable.Bad thing is my units are in c or below areas so you end up total repaint in 8 out of 10 units anyway.

(Yeah, I know, it's the most highly taxed way to do it, but this one makes sense to do that way.)My question is since I am self employed and I do everything through LLCs not using an S Corp, does the flip end up being a business investment on Sched C or a short term rental on Sched E or something else?

I am not judging and sorry for this message but I hope this is helpful.I would avoid these higher priced services / riskier adventures until the future.Anderson Advisors likely cost a couple thousands.The digital real estate may appreciate in value(my knowledge on it is limited at the moment) but it likely is not cash-flowing at the moment.I would put all these expenses/costs into cash-flowing real estate.To answer your post - It is usually not advised to put appreciating real estate within a corporation(C or S).You may be able to avoid double taxation now but the real issue is when you want to transfer the real estate outside of the corporation.Furthermore, real estate normally operates at a loss for tax purposes.

(I know it's not always smart to bet on appreciation, but I feel like Brewerytown is a good bet).