If the market softens at the 5-year mark, we can opt to hold the asset for a longer period of time, allowing the market to rebound.Projected Cash-on-Cash Returns: 6% Per YearNext, consider cash-on-cash returns, otherwise known as cash flow or passive income.

This will help reduce your taxes but get added back to your income (again, for Fannie/Freddie loans).Let’s use an example:Let’s say your company earned $10,000.

They'll need information on the deal (revenues, expenses, income, etc..), but they should be able to give you an idea of general terms (interest rate, amortization, fixed period, etc..) with some basic information.

If not, they’re fine keeping it, especially if it’s still generating income.

Buying a property with existing tenants can definitely have its perks, especially if you're looking to hit the ground running with rental income.

She filed our STR on Schedule E, and we owed $7000 to the IRS, because the rental income was added to our W-2 income, which was over $150,000.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Be sure to tell your accountant that you may now need to file non-resident income tax returns in each state where you own property as well.

However, financial freedom isn't just about replacing your current income.

If the rents end up being taxable in the organization, they'll actually be subject to maximum income tax rates very quickly - much faster than if you just did this personally.There are groups now starting with "socially responsible" investing - effectively a standard partnership/syndicate that is "investing for good" - that would likely be a better structure to avoid 501(c)(3) headaches in a for profit venture.  

Putting together a solid team will reduce risks and expedite your investing process.Establish Specific Goals: Whether your goal is to increase your wealth through real estate, attain financial independence, or generate passive income, clearly define your investing objectives.