Yet another reason, (albeit not in the top three) why all rental property should be in an LLC with a wife or child as a partner (even .1%) so as to file the Form 1065.Number 1 is liability protection, Number 2 is privacy, Number 3 is ease of transfer for estate planning, Number 4 is possible sale of the LLC to conceal sales price (also called drop and swap), Number 5 is having a single entity for financial reporting, Number 6 is brand identity.

Estate Planning and Wealth Transfer: If you're building a portfolio to pass down to your family, life insurance ensured your heirs inherit your properties without the burden of estate taxes or forced sales to cover expenses. 3.

As a contractor I had to work for money, be at the mercy of the customer, jobs and timelines never seemed to go as planned, only to pay tax on the money I worked for.

I had hoped to offset it with my capital loss carryover and haven't planned for any expense documentation etc. can I make the case that I am not a dealer because this is my first time and also have a high w2 income relative to the LLC profit? 

Quote from @Jaycee Greene: A few things I noticed, in addition to having the tenant pay the utilities are:1) Incorporate annual increases in rent higher than 2% (in your area, maybe 4%-5%) with a slightly smaller increase in operating expenses (say 2%-3%)2) With a gut rehab, I'm not sure why you need to spend $128/month on cap ex, at least for the first year or 2.3a) An 80% cash out refi is probably going to be hard to get.

-My fiancée and I are planning on having our first kid by the beginning of 2026, so extra room would be ideal as we are somewhat limited in the primary residence. 

It's nice but not something I plan to cash in on it as part of my strategy. 

I plan to hodl for the long term

.- So, you may want to consider locking in an interest rate via a 2nd mortgage.Do you have reserves for unexpected expenses?

If you can get to 10 over a 20-year period, you will change your life and look like a genius.Increase earnings, reduce expenses, save, and invest.