This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

I also agree that not being a slumlord and having good PM are key ingredients in not being sued regardless of the way you go with it.  

That is a critical - and often difficult to achieve - ingredient in your plan, and one that has only become more challenging with changes in the labor markets the last couple of years.

The most important ingredient in real estate investing is TIME!

Fresh ingredients aren't cheap, neither are lessons, gear and memberships, but I spend my money on them because doing these things bring me joy. 

For simplest terms, on a loan of 100K if you wanted to buy the rate down at a cost of .50 the equivalent of that price in dollar amounts is $500.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

S-corporations are still subject to some corporate tax provisions, which generally make owning real estate not as attractive for long-term ownership.In the simplest form, a single member LLC offers the best of both - strong legal protections if the LLC formalities are maintained (separate bank accounts, annual member meetings, etc) and easier income tax compliance on your Form 1040 (no double tax, no extra return, no corporate income tax rules).If you add a partner to a single member LLC (aside from another disregarded entity you own), you then have to file a partnership return (Form 1065).

This is no different than a baker using $1 of ingredients to make and sell a $4 chocolate chip cookie.You can only flip so many houses, so the ability to scale is based on your time and energy.