Quote from @Kyler Tarr: I am on contract to purchase an investment property in Ohio and the inspection showed the house has knob and tube wiring even though it was built in 1959.

I don't think real estate is great there, however, as an investment vehicle. 

List price: 445,000.DP: 89,000Closing: 8900Total Invest: 97,900Projected mortgage: 2500Rent: 1700 per unit, 3400 totalTaxes: 42Insur: 263CapEx: 100Repairs: 100Vacancy: 100Total expense: 3105Cash flow: 295, 3.1% - 6.0% CoC return. 

Hi Kris,It’s great to hear about your plans to invest in Indiana!

There is risk with any investment, anywhere, but airbnb does well here - if you buy the right place.Locations: this is important.

We're based in Tampa and, in addition to personally investing, I own a mortgage company that provides financing for tons of investors.

I'm sure they also told you their systems will protect against aggressive attorneys and creditors and make you invisible so nobody will ever dare file a claim against you...it's all a money grab.If you are a sole proprietor I am putting my money on the fact a single member LLC in the state in which you live/own real estate will suffice.

To Sum it up, its a good idea if you can exceed the cost of capital (higher rate than your cost of debt) with what you earn on your heloc/debt you pull out and invest.The question is how much gains above is enough to substantiate the risk of your variable interest rate, well thats up to your personal investing criteria.

After 20+ years in real estate partnerships, here's what actually puts you on the IRS radar (and what doesn't):REAL Red Flags That Matter:The Partner Complaint TriggerDisgruntled partner files Form 8082K-1 disputesPartnership disputes leading to tax filingsReal Impact: Instant IRS attentionSuspicious Loss ClaimsLosses exceeding investmentArtificial basis inflationSudden large losses without economic realityExample: $100K investment claiming $500K lossesRelated Party GamesCircular property flipsBelow-market transfersFamily partnership schemes without substanceWatch Out: IRC §267 and §707(b) violationsDebt Engineering Red FlagsBasis inflation schemesArtificial guarantee arrangementsPartner debt shifts near year-endCritical: IRC §752 compliance matters!

Hi Bob,Investing in U.S. multifamily properties as a Canadian is a big step, but it’s doable with the right preparation.