I am not ready for a $20K repair job.Account Closed - It is a 3/2 ranch, purchase $95K, ARV $122K, No cost allocated to foundation repair, but there is about $27K in equity that I want to keep..  

I am just now starting to allocate about 10% of my funds back into marketing and advertising and growing my company sending out mailers and doing door knockers.

Sharpen your pencil to get actual expenses (HOA, insurance, taxes, management (even your time), allocations for CapEx (appliances), Repairs, Rent Ready, etc.) remember your taxes would be jacked up based on the new purchase price.  

If you put down 20%, that's about $50/month in cash flow (depending on how much you allocate for taxes, vacancy, capex, etc...) which isn't a whole lot.  

@Tyler Shoaf out of curiosity, what is the importance of the "100% of their time listing properties" As long as they get the job done as promised does it matter how they allocate their time? 

For me on the commercial side I have to allocate time to only serious buyers and sellers.

They still haven't learned about business cycles, market analysis of gentrified markets, lack insight as to economic alternatives, competition, the understanding of highest and best use of the allocation of assets and scores of other issues, What influence is there from government, what if the laws change giving owners greater rights with respect to homestead exemption, financing tax relief or how the aging of our society effects the tax base over time?

A broker/agent has to make a split decision on where to allocate time to generate revenue for their career and which potential clients will lead to a closing.They have 2 calls come in with a hot market.

Sub S corps are better for actively managed operating businesses where you can allocate some revenue between payroll taxable compensation and business profit (no payroll tax).

That said, you can always your own water meters for each meter and manually allocate the bill.