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.

When looking at properties in other cities, I usually start by researching market trends like price-to-rent ratios, crime rates, and growth potential.

It's how I've maintained a perfect bond rating and managed my business with the CSLB>I've read many of your posts and am aware that you feel that you can decide when you want a permit or not  I would word it differently.  

., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

We recently relocated to Phoenix last summer and I'm starting to look for recommendations for local credit unions here in Phoenix which are trustworthy, low rates, personal touch, easy/simple to work with, etc. 

That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

This year is slower than normal because mortgage rates and home prices are so high.

I financed the deal with a conventional loan and bought down the rate from 7.75 to 6.25.

Ultimately, putting more down will allow you to get a interest rate and lower mortgage payment over time. 

And it doesn't seem to spoil the charm for couples on a romantic getaway.We've been able to raise the nightly rate 2-3x with better occupancy.