Its not advisable to hold real property in corporations, and S Corp are more corporate-like.Just stay with the default partnership and deal with the 1065 and K-1.More importantly, discuss with a qualified professional or two.

@Sara K.

Where's @Jim K., he'll know what to do:)

@Jim K. 

Even though numbers are not that bad why display them all of a sudden? 

So on a  400 k house I would lose 3000 per year in  cashflow but would make roughly 35000 per year on appreciation.. so would still be ahead

Quote from @Patrick K.: Quote from @Tom Gimer: @Patrick K.

@Jeff Bousquet@Dan K. hit the nail on the head in his summarization of the Springfield area.

In general, partnership entities do not pay taxes.They pass-through income which is reported on the form K-1 where the member / owner / investor will pay tax when they file their individual return.Furthermore, aslong as all members / owners / investors agree that no one is entitled to a salary, that is okay, aslong as everyone agrees to it.

k=smart+w...We only use these in select properties but the preference is with those that cut-off the water supply when a leak is detected.