I've been doing a lot of reading and researching on this but wanted to ask for help directly as well.I'm located in the Galveston Bay Area/SE Houston; my husband and I own 2 rental properties and are closing on #3 this coming week.

He who has the gold makes the rules, and the banks and insurance companies have all of the gold...If Daniel followed your advice he would not be breaking law - per se, but he would be violating a couple of clauses which opens him and his partners up to liability. 

Lots of new construction in SE Puyallup. 

Just to the south is SE Military which has lots of newish shopping and restaurants. 

@Kenny RainsYou may want to look at the publication below.https://www.irs.gov/businesses/small-businesses-se...You and your wife(joint owners of an LLC) may elect to report your income on your personal return instead of filing a partnership return.Let me know if you have any questions.

First thank you all for the comments.I have owned a few 2-3 families in the north east and the numbers are pretty close to actuals (3-4 years of actual expenses).All of the se properties are in lower income neighborhood (that may make a difference).I cannot see having 50% of gross rent expense + 10% vacancy, Or maybe for much nice/prime location. 

My partner and I have a property in SE Portland that is in the final stages of development for a duplex.We purchased the property with the intention of rehabbing the home on the front end of the lot and then partitioning two additional lots behind the home that will be accessed from a dead-end street and not requiring a flag lot.

Its a smaller company that is located out of SE Portland, but manages properties all throughout the Portland area. 

Iv'e got a couple Duplexes coming available...SE 110th and Holgate area.2 tax lots, 2 duplexes, 2 buildings, 4 doors.2bd, 2ba and garage for each unit.$4400/mo total rents.2 units updated and can have rents raised to $1400/mo.2 units can stay at $1100 or update and raise...$410k each property

I don't have experience as a flipper per se, but my SFR in a great area of LA -  I have also made lived-in improvements over the past 3 years.