Keeping clean records from day one really helps when tax season rolls around.

(One went with another manager eventually, and the property is listed for $400/month less than we listed it, and the other finally got rented to a solo professional.)

It’s definitely smart to evaluate the tax and cost implications of your funding options.

And of course we're in agreement on consulting a tax pro.

Now I can see some builders having an issue with comps.. but other than that its crazy to take these funds as income and then pay tax and plow it right back in.. 

The US Government and the States have but one way to deal with this, taxes.

- Look into if property taxes are reassessed after purchase.

[Milestone 2 and payment amount].Retainage: [Insert percentage, if applicable].Final payment will be made upon satisfactory completion of the work, as verified by the Contractor.4.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

So, I no longer live in those areas and am very thankful to finally have insurance.