The benefit of separate LLCs for each property with the formation costs, franchise tax costs, and accounting and tax prep costs of a single LLC.

Alternately, partnering on longer-term real estate investments offers distinct tax benefits and greater returns, that the two of you might consider.If your dad has idle money in the bank, or perhaps in a tax-deferred or tax-free self-directed retirement plan, an 8% - 10% loan could make some sense, but not if he has to borrow the cash.Jeff S. – Private Lender in Los Angeles

Personally i think that it's all depend on the tenant itself, sec 8 has a lot of benefits and my tenant is great so far.

It is cyclical.If you truly analyze your investment you receive much more benefits then just cash flow.Buy n hold is long term wealth.

If your basement freezes consider insulation for the box sills (the area where the frameing sits on the concrete our block wall) - spray foam is usually the best as it will create an air tight seal and as a nice side benefit it also keeps bugs and spiders out.

I started a Partnership with some friends and relatives who mainly are Stock Market Investors.The purpose of the Partnership, in this case an LLC, was to purchase a $1.5 Million 3 Family in Brooklyn, All Cash.3 months ago I told everyone to pull out their cash in the Stock Market.They completed their stock sales a few weeks ahead of the Market falling off the cliff.I then closed on the 3 Family at a very good Price, collected a $40k buyer's commission as I am also the Buyer Broker, and just finished renting the 3 Units, signing the last apt lease in a few days, getting approximately $6k per month in Cash Flow for the 1st year.Not only that, I am securing an Investment HELOC at a 50% LTV, so roughly $750k, which I can use to investing in the Stock Market.I had already anticipated the fall of the Market as the inevitable Corporate Tax breaks had to wear off eventually.There just isn't enough consumers that benefited, in my opinion, therefore Corporate Revenues cannot increase and profits has to either stabilize as the max Corporate Tax breaks levels off.Really, only one way to go.I am anticipating the decline to last for a while.As an Trader, however, I will eventually buy long term growth stocks but also hedge it with PUTs in case I get in a bit too early.My friends and relatives are ecstatic as they probably saved a decline in their net worth by as much as a $1 Million.BTW, there is an old saying, "It is easier to make the 1st Million than it is to keep the 1st Million."

Their agents get a base salary, paid time off and benefits.Other agents like me receive no salary, no benefits, no paid time off - and of course, we cover all of our own expenses. 

About taking advantage of the intended benefits of the tax code.

If you do a 1031 exchange, you postpone depreciation recapture, too - which is a great tax benefit and a good reason to try to maximize depreciation early.7.

@Rupert GrantGenerally if you're eligible for a Solo 401k, it makes sense compared to a self-directed IRA for many reasons: Compared to an IRA, Solo 401k contributions limits are roughly ten times higher.There is no custodial requirement for the 401k.You don't need the additional expense and administration of an LLC to have checkbook control.You can borrow up to $50k from the plan; IRAs do not allow participant loansThere is a built in-Roth component whereas IRAs are either traditional or Roth, not both.A spouse can also participate in the same Solo 401k plan.The Solo 401k has additional tax benefits over an IRA when investing into real estate using leverage.The penalties for prohibited transactions are less severe, though it's best not to utilize this benefit :)The one exception I can think of is if your primary goal is to self-directed Roth IRA funds.