Hence the entire profit is subject to SE tax.As an S-corp, you would typically need to pay yourself a salary, which is an employment expense.  

Just did this with my 6-units, as property per se is either Real ( land/hosing) or Personal (all that is not Real). 

Thanks to Will, J, Dave, Blane and Steven for all the information; a little clarification; The LLC is owned exclusively (100%) by the contractor, the investor is not a owner of the LLC, he simply provides the funds for the contractor to purchase the property and the contractor holds the properties in his LLC until he rehabs and sells them, so there is no partnership per se at all.

I filed 5 day notice followed by eviction as pro se (on my own) when the tenant did not pay February rent.

highly doubt it, but could happen. so as long as there is eagress, windows and a door to go out, i could see swinging it for a year for the FHA. but most likely not legal per se

Many people have Solo 401k plans for side businesses or part-time SE.

But Portland is not really a landlord per se market as it relates to BP because of price / rent ratios.. folks that buy here love it.. live here would no sooner go to Cleveland to be a landlord than go to the moon.. its a funny place in that regard..it certainly keeps portlandia Weird  as the saying goes. 

(Modern Real Estate Practice)So an IRS lien will not always win over others, but I believe Wayne is right in this case  - the buyer's IRS lien will be superior to the mortgage lien - not because it's the IRS per se, but because the filing date of the IRS action preceded the creation of the mortgage lien.

In fact if it cash flowed positive then that income could be subject to SE tax.

These are great responses...I'm currently sizing up 2 properties on Chicago's SE side.