Their 10% cap rate valuation was even less than the town’s market appraisal to determine property taxes.

i would be purchasing the property with an FHA loan. and im also looking for solid cashflow + long term holding I think house hacking is great way to get started, especially here in SC so you can take advantage of the lower tax rate.

The additional costs for commissions and costs are negligible in the bigger picture and if you are looking at capital gains tax it's a deductible sales expense which more than offsets the additional costs.

I pulled a list of tax delinquent properties in my area.

Their fund on tax liens I was scratching my head on that one…

Remember also that the interest on the loan is taxed at ordinary income rates.So for example lets say you have 100k and were making 8% in the markets - 8k per year and say you are in top bracket, you will pay $1600 in taxes per year or netting 6400.Now lets say you did a loan and were at 5% you are earning $5k per year (actually less because principal is being paid down and some of money goes into essentially a 0% checking account).

I have a couple questions in regards to setting up the proper entity as well as taxes. 1.

A couple years ago the IRS asked for her 1979 taxes and she didn’t have them to prove them.

If there is only a JV and not a new LLC formed, what forms are issued at the end of the tax year?

Even if you're still paying for some of the expenses out of pocket, you've most likely drastically reduced your cost of living by eliminating most of if not all of your mortgage, property taxes, and/or insurance.