You can specify the terms of the LLC in the operating agreement.

The reason for that statement is that you are in the same area where some of the best rehabbers in the country operate and I know you can pick up some of the tricks they are using to secure properties just from networking at that REIA.It is definitely not like 2004-2006, but there is still a lot going on and even though it is tougher here in Tennessee, there is still a lot of opportunity and a lot going on.Best of luck,Chris

There are plenty of auto mechanics who operate their garages under an LLC or corporation.

4) Do LP's typically receive a preferred return on sales proceeds or only on operational cash flow?

My real estate experience is in owning and operating a mobile home park, but this seems like a small deal that we could handle.

That person being YOU.I may not handle the operation side of my properties forever, but since it is my business, I at least want to know how to do each aspect of it competently.

Here is some good news for small operators!

Other solutions, while not as clear cut, and not as profitable, could run as little as $2,500.00 in start up costs, with no real ongoing costs to speak of, and is probably the only practical strategy for a smaller operator.

It takes cash to own and operate a large rental property, more than just the down payment.

The name C Corporation is used only to distinguish one taxable entity from another taxable entity (there is no Subchapter C, which governs how a C Corporation is taxed.)Because the "S" simply refers to a section of the tax code, choosing to tax an LLC as an S Corporation affect ONLY the rules used to tax the LLC - NOT the rules to form or operate an LLC, nor the rules that determine the liability of the owners of an LLC.LEGAL REQUIREMENTS & LIABILITYLegal Requirements:The rules to form and operate a Corporation are different from the rules to form and operate an LLC.