At minimum You will need to produce the following: utility bill in your name, lenders like cable or house phone not a cell phone, bank accounts to be mailed to subject propert address, drivers license should have subject propert address.

After all expenses, say a property is producing $400 monthly cash flow.

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"End quoteMy first followup question:It's my understanding that I need not be concerned about the impact of the Safe Act and licensing requirements if I'm using just my money to loan to others, and that I have a broker creating the loan documents.

My goal is to purchase one or more income producing properties in my area to diversify my retirement investments, and to possibly provide some tax benefits.

Income Property doesn't touch upon this and Scott's Option 2 in most cases will never produce the extra return on investment necessary to make such improvements.

I have an opportunity to purchase a 4 unit multi-family rental propery which should be a good income producing property.

Healthy networking and prosperous investing to you.Kudos,Mary

As a rental, it would produce an 8cap using the 50% rule if you could rehab for $24,000 or less.Hope that helps.Bill

It helps maintain healthy, happy relationships with investors from investors often more than 1000 miles away.As for family and friends in town--this almost never works out well.

You have no idea if this seller has a debilitating medical issue, a death of the main income producer in the family, etc.