Clarity here avoids future disputes.Business Strategy: Align on your goals—flipping vs. rentals, risk tolerance, and timelines.

@Felicia Richardson just a note for the future. 

That they wanted "Cheap" buys, not intelligent buy's, not data driven buys, not future casting buys, just "cheap". 

I did the NC property out of state and was not happy about the returns so future ones will be in my backyard only.  

The land we are buying also has secondary value to future expats moving there.  

Future gains on the investment portion may be deferred with another 1031 exchange, while gains on the primary residence may qualify for the $250k/$500k exclusion if residency requirements are met.This post does not create a CPA-Client relationship.

Essentially you are creating future tax free income by being able to roll over these losses.If your income is between $100,000 and $150,000, a portion of that $150 loss is deductible and the rest rolls forward.If your income is less than $100,000, your loss is fully deductible - and THAT's the cool thing about rental income. 

If you set up this new endeavor, the 10 cabin property, improperly you take the chance that things don't transfer and possible future legal issues. 

You may wish to think about it as an investment and you may plan for it to be an investment in the future, but until it is an investment it ISN'T an investment property. 3.

A nice home they might want to leave to any heirs tax free in the future.