It has been my experience that the LLC pass-thru can be used to offset other income/loss however as was suggested to me a long time ago - if you are combining flips (that you take title to) and long-term hold properties, chances are the IRS will group all and consider you a "dealer" and will tag all properties as short-term capital gains or the highest tax rate they can.

Currently, I manage the field service and repair division for a woodworking machinery dealer.

If you go there and see prostitues and drug dealers working the corner next to the property at all hours of the day ask yourself what sorts of people would actually live there.  

Are you going through a broker/dealer, which is required for a 506(c)?  

Just like a car dealer selling units, they will make X dollars off each deal or they won't do the deal....probably have better luck at a car dealer getting a low ball price than at any lender getting a significant chop on the rates.

Also, if you are planning on "flipping", you'll want to be careful to not be tagged as a "dealer", as their are tax liabilities associated with that.

My accountant has taken the position that I am not yet a "property dealer" so he hasn't filed my real estate sold on a schedule c.

Originally posted by @Matthew Irish-Jones:@Troy A Washington Start with a comprehensive book on Real Estate investing. 

@Matthew Irish-Jones thanks very much for you response!

@Matthew Irish-Jones Thanks Matt.