I've always heard the exact opposite (that you absolutely need an entity to build corporate credit).

That seems to be the opposite of what everyone is telling me here.I will have very little capital gain after deducting my points and closing costs on this home that I purchased less than one year ago.  

It's likely the opposite of everything that you said.1.

Account Closed That’s funny because the opposite is true: I assume nothing. 

@Mark Chambers "We are trying to build a portfolio in western PA where we currently live" - The whole family stands to make money (tax free) but you'd rather buy her our (debt) to operate a MTR on the opposite side of the country? 

Its a bit more difficult then that this is not a passive investment do yourself a favor look up some group alf homes wherever you are call ask speak owner tell them you are looking open a group home in the opposite part of town and would like take him and his wife to best steakhouse for dinner and ask for recommendations on how to do what they did.

We are very conflicted because we have heard opposite advice from seasoned real estate professionals and developers.

Some markets are simply better suited for appreciation vs cash flow while other markets are the opposite.

I'm suggesting the opposite: go to neighborhoods the locals tell you are good to verify that they are good. 

Bringing the management in-house would allow real time decision making on the validity of the spend.While there are other benefits, for brevity this post is just going to focus on the expense.Looking at the opposite side, there are quite a few challenges to starting a new business, which in essence is what is being done here.