However, purchasing the replacement property from an estate where your mother-in-law is the executor and other heirs are your wife's aunts and cousins raises potential related-party concerns under Section 1031(f).The IRS generally prohibits 1031 exchanges between related parties unless both the buyer and seller hold their respective properties for at least two years after the exchange.To stay compliant and avoid disqualification, ensure:The estate sells the property directly before any distributions to heirs.You hold the replacement property for at least two years.The transaction is conducted at fair market value with no prearranged agreements.Given the IRS scrutiny of related-party 1031 exchanges, consult a qualified CPA or 1031 exchange accommodator to structure the deal properly and avoid potential capital gains tax liabilities.This post does not create a CPA-Client relationship.

Additionally, your brother would inherit your cost basis in the property, which could result in significant capital gains tax if he sells the property later.

There are obviously other methods such as direct mail, PPL, PPC, SEO but some take a lot of working capital or a lot of ground work or sometimes a combination of both. 

Because your second year is likely (oops, I did it again) to show a net profit instead of net loss.

Your first year will be a learning experience, you will want to be close to the action, as you may not have the capital to pay someone to handle everything.

@Tori Rhodes faster ways to scale:Buy a portfolio from another investor- Get seller financing from a savvy one that doesn't want capital gains hit!

At least comparatively to properties in California, Washington, Montana and Idaho, investors seemingly still get a lot of value for their capital. 

We're largely looking at value add projects (aka BRRRR **cringe**) so that the vast majority of capital is coming out once a refi is done.Not vanilla, obviously.

If the US proves out to be the safest investment haven globally and sees continued capital inflows, Treasuries will likely compress / fall and investors will turn to real estate to continue to diversify.  

In general though, I would think that if this is a partnership LLC you could make a capital contribution in return for equity in the LLC.