Appreciate your Defense of the effort.

Originally posted by Account Closed:You claimed not to be a legal expert...that is plenty clear but not a defense.

How much more will vary, and can be debated.Which means the seller, if he had a decent agent would NOT list at $200,000.If we are talking about a house that needs no repairs, and has a fair market value of $210,000, then no one would do that deal because closing costs would swallow the profit.As always on these threads, we are getting defensive reactions from people who are real estate professionals whose practice includes assigning contracts, when the criticism being offered is of the hundreds or thousands of clueless idiots messing with people's lives without being able to perform.No one, including the original poster, is criticizing the sort of thing you and Hattie are talking about.  

While there is some Potential merit to having an llc taxed as an S-Corp (not In one) it only applies to active income like flipping and you’d need to net probably $50k/year net from it to take advantage of it.Good insurance is best first line defense.

. - Running your property well is probably your best defense. 

Here's a good example:  My husband was been a defense contractor that specialized in renovating government buildings. 

And I agree with @Nathan G. that insurance is generally your first line of defense.

To educate your tenant is your best defense you will be surprised how many do not know simple preventive maintenance tricks.

Or the strong core markets but no cash flow like Boston or Seattle.I think focusing on the hybrid markets usually performs best for clients who can benefit from the appreciation over the years and really grow their long term wealth, while making a little cash flow as defense along the way.

Maintenance issues are dealt with via home warranties as a first line of defense.