Even though short term capital gains is taxed the same as ordinary income, I need the capital gains designation.

I'm 60, so no 10% withdrawal penalty but of course withdrawal would be ordinary income. 

You just need to report 1 activity - You don't need to split it between the period you held it personally and the period you held it under the LLC.Schedule C is for business/ordinary/active income.

@Frank ZondloYou will need to have a business that generates ordinary income for you to take advantage of the Solo401K.If you have your own business - what does it do?

I have a feeling I have to share his with you.Generally, there are two tax rates:1) ordinary - higher rate.2 capital gain - max 20%.

Consult with a professional who understands tax implications for foreign investors; In terms of US, few things to consider: since you will generate an active income - which is ordinary, you will need to choose entity that will save you taxes; consider how much income you expect to generate in a first few years; the state; for example with CA you have additional entity level taxes - for example tax on LLC starts at 800 per year even if you have no activity.

As @Steve Vaughan pointed out, full costs for utilities, lawn upkeep, and snow removal are easily offloaded to the tenant, and if things go crazy on the small lawns the fixer landlord can step in with his equipment and save the day before the municipality gets on his back.It's an affordable way for people with ordinary incomes to get into REI.

If we were to sell this property in 2019 we are under the impression that you will not owe capital gains on the profit if your taxable ordinary income is less than $77,200....?

@Brit Hale I'd love to hear what you've got going on in Joplin, and that Bass Pro in nearby Springfield is one of the coolest Bass Pros around.

Tenants can't be charged for ordinary wear and tear.