So it's a pure expense.

Your specific variable expense assumptions are wrong, BUT you stumbled into them being correct overall.Also, you are approaching this correctly - entering in the numbers to generate a purchase price that meets your metrics:)

He was more expensive because now I gotta pay someone else to fix it.But here's the other side of the license issue.

As far as being expensive; if the tax liability is not large enough then yes I agree, however, it depends on what is being sold too.

@Vidit Maini Starting your business as an LLC taxed as a C corporation offers flexibility but involves double taxation unless you elect S corp status, allowing profits to pass through to your personal return.For tax savings, deduct startup costs, track business mileage or vehicle expenses, and consider a home office deduction.

If the rent payment covers your mortgage and you have a good tenant, why would you get rid of them to take on the expense of unit turnover, because you will have to do one, and the 5% vacancy loss just to increase your rent $150 per month?

This is why...Now, one of you becoming a "real estate professional" is very beneficial for when it comes down to the long term of not paying more taxes.The good thing about being a "real estate professional" is that you can grab your whole income (w-2, rental income, dividends and interest) and then use the rental expenses/depreciation to lower your whole income.

This provides you with a safety net for any unexpected expenses during the rehab process while also potentially allowing you to secure higher leverage on the purchase price.

Where trust is low, though, things are slower or more expensive or both.- Understand that you can have never more than 2/3 of the following:  Fast, Good, and Cheap.  

The disadvantage is that compliance is difficult, much more expensive than Reg D, and the chances of being sued much greater, while raising capital more difficult.