Be prepared with bank statements, leases, and operating agreements.Next StepsTiming: Wait until after January 19, 2025, to refinance and transfer ownership to avoid violating FHA rules.Consult Professionals: Speak with your lender, a tax advisor, and an attorney to confirm the implications of refinancing and transferring title.Prepare Documentation: Have your property appraised, ensure leases are up to date, and organize financial documents for your LLC.You’re on the right track with your plan, and a few strategic steps now can help you maximize the benefits of refinancing while avoiding complications.

But once you declare to be running a trade or business - then 1099s do come with the territory.If you really want to avoid 1099s and decide to claim to NOT be running a trade or business - be prepared to lose your business overhead deductions upon an IRS audit.

Other distractions include non income-producing activities - aka any distraction pulling you to do something other than speaking with and following up with people.How can I prepare myself?

I’m curious to hear from other investors who have ventured into flooded properties such as what challenges did you face, particularly with insurance and permitting?

You are much better of preparing for the worst case scenario and adjusting your strategy accordingly.  

This could let you start building relationships with others in your area (and potentially lead to joint ventures later) and to build up your working capital.

A smart seller will have note, deed of trust/mortgage/etc. prepared by a local real estate attorney (yes, he/she may work with/at the title company) and be sure the security instrument is properly recorded in the land records. 

The trust preparer suggested we put our rental properties into the trust as they are currently owned personally. 

Ask your property manager to prepare a staffing plan which would show how they would staff the property and what the salaries would be. 

You can definitely do this in Phoenix, but be prepared to be hands on.