In Berlin, rental arbitrage has been very profitable, with average annual margins of 25-40% after all costs but before taxes, so shifting to a market where arbitrage is barely breaking even is definitely a reality check.Given your experience, would you say the best way to enter the market now is through purchasing properties with financing?

For example, instead of tax returns and W2s they will check bank statements and the After Repair Value (ARV) to underwrite the loan.

We pay payroll taxes and workers comp, we comply with state and federal laws regarding work place safety, PTO, vacation, labor laws et al.

I can’t imagine the returns you would have to generate. 22% federal tax, plus 8% state tax, plus 10% penalty.

@Jeanette LandI always recommend using a tax professional.

That leaves $400 to cover taxes, maintenance, vacancies, etc.Now, let's pretend ALL your expenses come to $2,600 and you have $400 left over.

Since the trust is a disregarded entity, the benefit is bypassing  probate, not tax issues or liability concerns. 

In doing so, bear in mind that the cost and admin of a corporation is higher and that the tax treatment is different:1.

This is day to day spending, rent collection, tax/utility payments etc. (1) account for all security deposits, (1) account for parachute fund, capex items etc.

No problem.. what I did with my ridgeland and Madison rentals and I had bought 12 new builds for the Gozone tax bene's post Katrina..