It is very time consuming to allocate overhead costs such as automobile, cell phone, etc. to each property.

@Lucas Schlund If this is your first investment, how confident are you in your budget, time frame, contingency allocations?

Your a 1099, so you have to pay your own tax's, so after allocating for that what you ACTUALLY get is $3,624.40You spent 60 hours talking to and working with potentials that resulted in 0, to land on this 1 that DID result in income, and spent another 30 hours in total on this, making for 90 hours labor investment too achieve $3,642.40.   

All agreed that we would much rather use our company as the front man (if you will) and then use a viable agreement/contract to list purpose, profit allocation, rights (including voting) and obligations of persons under agreement, amendment and dissolution criteria, and duration of joint venture. 

Rates impact the margin available in this market, so a $250k home would only see 200-300 month profit without allocating for repairs or vacancy.

By using a F&F calculator, you can make informed decisions, minimize financial risks, and efficiently allocate your budget and resources.

Letting the dust settle, allocating the cash proceeds.Problem.  

Your accountant would be the one to decide that.If you do qualify you will be able to take the gain allocated for that exclusion tax free. 

The gain allocated to the OO unit will be tax free up to $250,000 if single or $500,000 if married. 

Not only is this prudent business management but if you're looking to scale down the line, having a creditworthy entity that can take business loans in its own name is a game-changer regarding risk allocation.