I assume this income/loss is passed onto your personal return through a K-1 and the business files a 1120? 

@Sebastien Tinsley Just copy & pasting this from thread I replied to for another young person looking to startWith little experience, it's better that you invest locally vs OOS - unless you want to invest a LOT of time learning another market and networking with th right people.Locally, look for a 2-4 unit property that will qualify for FHA 203(k) financing.- This will allow low down payment and the 203(k) allows repairs to be financed into the purchase mortgage.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

@Michael K Gallagher:Thanks for your thoughts!!

To optimize taxes, consider lending through a self-directed IRA or Solo 401(k) to grow interest tax-deferred or tax-free.

Profits during the partnership can be shared based on the agreed equity split, with income and expenses reported via K-1 forms. 

Quote from @Mak K.: I am from Texas.

I've worked for Superstar Car Wash, Circle K, and The Carioca Company. 

@Michael EwersThese are all great points to that @Jon K. is making.

Alimentation Couche-Tard, the parent company of Circle K, has made an unsolicited offer to acquire Seven & I Holdings, the owner of 7-Eleven.

:I had a consultation with Andersons a month ago... his youtube videos are great and a lot of good information... but they have packages... and are VERY VERY expensive... for the same setup as other companies for a lot less.I contacted Royal Legal Solutions as well... packages as well and expensive.I also contacted the Small Business office in Kansas and a couple of local lawyers.So far Mark J K has been the best consultation and fees as very down to earth... but will confirm tomorrow :)