I advertised all the properties, so knew all the inventory for our office and on MLS.

Rents seem relatively high at $800+ per month for a 3bedroom in these areas.There also seems to be quite a bit of inventory since Florida is the #1 foreclosure market right now.

If the intent from the outset is to resell, then the property is not an "investment", it is "inventory" and is considered active business income, or self-employment income, as your accountant states.

As for predictions - I expect prices to rise and inventory to be short for a few years.

In other words, you would be using the income from flips to finance your rental properties.To do this effectively, you will need to leverage your purchasing power with financing.The Houston housing market is on fire right now with months of inventory, sales prices, and rental rates all at or approaching all-time highs.

There's still a large shadow inventory out there, while new starts are increasing to meet the current surging demand (in some markets.)

It seems to be easier to get the upper range in a pre-sold home vs an inventory home.

This new loan will allow the group to take down another $2 B of inventory over the next 2 years.

Keep this in mind Cory....You are doing nothing more than providing a service...The owner wants to sell, and you want to lock it up to sell to an end buyer..You bring in inventory to sell to the end buyer.

Good properties are moving and light rehabs are harder to find, inventories are down.I'd look for more than a market if I were starting off and moving to a new area.