Have you discussed with your CPA whether your flipping activities are an active business income subject to regular business/personal tax rates or more of a passive investment subject to capital gains and eligible for a 1031 exchange?

PROS: house is super affordable, some houses on the street are being renovated, move-in ready, I could force appreciation if i wanted to (i.e. easily add a 2nd bathroom, minor updates) and neighbor is up and coming.CONS: 1 bathroom that is jack/jill style (guests would have to walk though bedroom to get to bath), water heater is 15yrs old., sort of funny layout/small kitchen some houses on street are a little unkept.View report*This link comes directly from our calculators, based on information input by the member who posted.

I’ve already found out that one of the first few things I’ll be doing after closing is replacing the roof and updating the kitchens.

There is essentially two types of investor to be included in the partnership: 1) member with very little assets to protect with a substantial amount of savings in retirement accounts, and 2) member with retirement accounts but also a substantial amount of money in a regular investment account.My questions are: 1) How does the Louisiana laws protect retirement assets and personal home in case of litigation? 

I'm working on trying to find a lender who can do Homestyle renovation loans so I have the option of updating kitchens/bathrooms when needed. 

Will post updates here.

We recently bought a 5-unit building on NW Kearney Street (right by the hospital) and have an opportunity with our largest unit (+/- 1500 square feet with a private deck and parking spot) to update from a 2/1 to a 3/2.

I am simply using more precise language.I do this because Unrelated Business Taxable Income (UBTI) is generated when a tax-exempt entity engages in a trade or business on a regular or repeated basis (i.e. flipping houses or other types of dealer activities). 

Update: Both of our CPA's have challenged this deal.

Keep your eye on the events tab for updates if you’re interested 😀.