They are not illegal per se, just not worth the risk involved when there are other more suitable strategies such as wrapping.

this subject has been talked about a bunch on BP.. why do people sell cash flow assets.the argument that they must be selling the dogs and keeping the good ones is not reality.I have been funding turn key companies for going on 20 years now.. they sell almost all their properties.they are in the business of buy rehab and sell.. they are not in the landlord business per se.. now some will have some properties but its not their goal to own hundreds of homes.. its hard to finance all of those first off.just like me who builds new homes why don't I keep them all.. well because I want to sell them that's my inventory to sell just like anyone else and I make more on one sale of a new home than I would with 20 years of cash flow at 200 a month.. so its what I choose to do..

@James W. se d it several ways.

I am a realtor and real estate investor here in SE Michigan as well.

Furthermore, if the LLC is generating active income, more of the income would be subject to SE tax.

This isn't a post dedicated to excuses per se, but rather its about barriers (both mental and financial) that I need to overcome in order to expand my real estate portfolio. 

it just takes these regulators usually 2 to 3 years to hammer them.. they know when the statue of limitations runs and usually show up at their door step at 7am when they are still in their PJshttps://www.sltrib.com/news/2017/10/12/utah-man-se...Read up on Chad Deucher he had a turn key bizz like Morris.. wreck a ton of people like Morris in the end he got nailed.these guys came into my Oregon office seeking financing when they were about 1 to 2 years in.. 

Don't know that there's a correct answer per se.....

If you are just investing as a limited partner, which most of the investors are, there is no SE taxes. 

@Macy Stevenson you’ll definitely get stationed where you’re needed especially given your AFSC, the people that are commenting are correct that you won’t be able to move off base until you hit a certain rank until then you can continue to do research on possible locations you can go and that the real estate market is like at those locations, with time and intel on your desired locations and after you’ve had some service time and grade under your belt then you may be able to PCS to your preferred location, at least you have time on your side per se to prepare.