California tends to have more laws on the books and requirements and restrictions that it can be a good idea to form a CA LLC for out of state property so that you as a CA resident are covered, and to try to have your contracts fall under the purview of CA courts.

Interesting, but I’ll have to find out if my ordinary income was reduced by depreciation, and therefore any gains will be taxed as ordinary income and not more favorable capital gains...When is bigger pockets going to form a lobby or pay a lobbyist to advocate a longer window to use 1031 exchanges??

I have a quick question:When trying to form a Section 8 deal, have any of you done this in conjunction with a BRRRR strategy?

I will try to answer your questions below.The reason supplies, advertising, legal is because those expenses were specifically called out in the Pro-forma I received from the owners. 

If doing a TIC purchase you may want to form a separate management entity that you are both members of. 

@Jay Hunt While I can't speak for all lenders, in the situation you are describing we would use a pro forma profit and loss statement that included rental income for the unit you lived in.  

Need to also consider supply and demand, condition of subject property and current income with a consideration for pro forma.  

I apologize for my ignorance on the matter as it would be the first time I've tried to form a deal on my own between me and a buyer. 

Interview 2-3 office landlord brokers and 2-3 retail landlord brokers who specialize in your submarket, be sure to ask for lease comps specific to the product type they would recommend and run a pro-forma for each Scenario.Then hire the team who’s recommendations align with your own independent analysis.

A property manager who can educate you on a market, help you form a strategy, fit right into your due diligence process, and execute on a clear takeover game plan as soon as you hold title.BONUS: I love areas with high rental demand, provided 1-3 are satisfied as well.