If you want to flip, you also need multiple exit strategies to protect yourself if the market tanks--for instance, if the property cannot be cashflow positive as a rental before you spend the money on your rehab, you are putting yourself in a very dangerous position (the market could tank, and you end up upside down on a property that's costing you money every month...that would be a serious problem).I'm not saying it's impossible to successfully flip houses right now, but I am saying that you want to be very, very conservative with your financial models before you pull the trigger on a property...and, quite frankly, if you don't already have extensive experience flipping, I would say that right now is not a good time to start. 

If your situation/ cashflow/ ability to rent is right on the edge and underwriting assumes that all will go well as long as all goes well … that's a dangerous place to be. • Have a solid buffer or plan B. • What goes wildly up (local appreciation) is likely to also come down.

In California however, the the state and the courts have not explicitly made this distinction between SMLLCs and MMLLCs when it comes to liability protection.

@Teja Williams it's probably important here to make a distinction between the asset (i.e. the property) and the owner (i.e. the legal Trust).

High risk that a condo association will not see a distinction between a MTR and STR, and will implement 1 year minimum lease requirements.

So lets say I run the numbers on a typical box in the city, the numbers are good but to me the home might be virtually uninhabitable because proximity to neighbors, no place for pets, and the perceived and realized dangers of the city.

The trees are a danger.

I see two distinct items, one is a "tax consultant" and the other is "someone who is experienced in doing taxes for real estate investors."

@Marcus Maloney One of the problems you can run into as a licensee who is wholesaling is that there is no meaningful distinction between wholesaling and a net listing.For the non-licensees reading this, a “net listing” is one where the seller says “I want $XXX,XXX.  

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