Since fix-and-flip income is classified as active income, taxed at ordinary rates, this setup helps minimize overall tax liability.To protect both members, draft a detailed operating agreement outlining roles, ownership percentages, profit-sharing, and an exit strategy in case the business dissolves.

Quote from @Garrett Jennings: I wanted to check on the forums before I consider using this as a strategy.  

This in turn will kill your exit strategy if you are not doing your due diligence and playing conservative.

The best strategy I seem to have deployed so far was to contact all my current tenants and let them know I’d give them a cash referral fee of $250 for anyone they recommend to me that goes through the vetting process and successfully moves in.

What strategies were you considering? 

We upsell 3-to 4 simple packages that guests love; I have trained my cleaners to handle them (they make extra money), my VAs help schedule it with cleaners, and we still make a 50% profit margin on everything.

If you need help with landlord laws, house backing strategies, or traditional MTR investing specific to New Jersey happy to help.

Hi @Jerry Nogueras that depends on your goals and how open minded you are to different strategies. 

Here are some practical steps and strategies to consider:## Single Family and Small Multifamily HomesWhen looking at single-family and small multifamily homes in northern Illinois and southern Wisconsin, make sure to analyze the local market trends, rental yields, and property appreciation rates.

Given the competitive market at the time, every property was receiving multiple offers, and securing a deal required both strategy and speed.