Identifying your goals can help you identify your markets and class. If

In the expense line, only expense the additional taxes that were not collected but had to be paid out of pocket from rental payouts.Question 2:I know about the 14 day rules for classification of rental property vs personal home vs split.

The  broker is the higher classification.      

Some use the A through D classification; others use a scale that goes A through F.

Even though it may be a residential home but if the classification falls under commercial, we won’t be able to move forward with appraisal."

For me  "large capital" would be a minimum of $5 million or more in cash allowing you to have nationwide options versus $1 million in cash limiting you to certain areas of the US (Midwest and South) and certain classifications of Assets to pursue within those areas if you're targeting commercial Multi-family.It seems like you're set on Indiana based on your reference in your post.

The only difference is the classification on form Schedule E if individual or Form 8825 is an entity.However, if you use the multi-family is split between personal residence and rental property, then your taxes does become a little bit more complicated.Are you only looking for local CPA?

In general, the ones to avoid are the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors Require you to close before a tenant is in place

A large factor is the fire classification rating.

Flip properties do have SE tax, with or without LLCs.SE tax for flips can often be partially alleviated using LLCs with different tax classifications: partnerships and S-corporations.