I am a real estate investor operating in and around Baltimore, Maryland.

The Operating Agreement for the LLC will spell out other agreements with members (you and your wife), and it sounds like 50/50 for capital, profits, and losses.

If you paid 100K for the property and expended 25K in initial capital improvements, then use 125K as your cost.Going forward, you would put together your operating forecast/budget to include all the typical expenses: utilities, property tax, groundskeeping, admin, marketing, etc along with your allowances for vacancy (8-10%), maintenance (10%), and property management (7-10%).

The build rate of Senior/single story 'patio housing' here is exponential given the weather, taxes & build/operating costs.

Where are you operating as an agent?

@Don Konipol flippers in Houston that are operating under this assumption are not going to be around for long.  

What it states is that property management, vacancy, and operating and expenses over time will equal 50% of your gross expected rental income.

Until then you don't technically have an operating business.... just an expense.

Hello GroupI am considering taking my wholesaling operation about 45mins South of where I live to another city.

If the exemption is 100% you'll notice several lines (School Operating etc.) that list a millage but have $0 for the taxes.