Also the 1% rule is about as good as the rule thumb and not based on current conditions or current data. 

Quote from @Richard Ferraro: Quote from @Benjamin Aaker: If you are working with a Realtor (TM), they will have to follow the NAR rule to sign an agency agreement with a buyer before showing houses.

Spread your eggs between multiple pockets rather than everything into one property that may or may not appreciate and cashflow as you forecasted.The only exception that rule would be in Austin, if you live there, or in Phoenix AZ just because the growth in the Phoenix metro is so strong and you can still cashflow there. 

You're buying a specific property, in a specific location, in a specific condition, subject to local rules and regulations.

We still find deals here that meet the 1% rule, positive cash flowing, and have tons of potential for appreciation.

Also, don't forget the cardinal rule is sales: every "no" brings you closer to a "yes".

Warning: Schedules C claiming expenses without any income are not against the rules, but they are IRS audit flags. 

That's why I am here. first thing I learned in RE is I for sure dont know everything and very few folks do.. we are all learning even at 50 years of doing deals I learn new things every week.. thats why I am on BP you have also 50 states rules and laws are not nationwide so I like to know how each state works when it comes to transactional real estate and development.

You cannot get any meaningful answers until you specify what is your "side gig", how much money it's going to bring and how much expenses it's going to incur, and what kind of expenses.And, as a rule of thumb, unless you clear $50k after all expenses, you probably will not benefit from any entities tax-wise. 

Asking in the correct forum will get a better response.Read the RULES!