Or can it be an operating company?

I encourage you to get started, but be smart and operate in reality.All the bestJeff

Details in MLSUnits: 6Taxes: $5874 (annual)Gross Income: $48,600 ($675 per month)Net Operating Income $38,838Total Expenses: $9762Vacancy Rate: 5%Asking Price: $449KOwner pays Trash & Water______________________________________________________________Based on the expenses I am assuming that the property management is completed by the owner and that they are including ~$4K a year in insurance.I ran the numbers in my own Deal Analyzer and I added:5% of Effective Gross Income as Maintenance Expense 10% of Effective Gross Income as Property Management ExpenseBumped the vacancy rate from 5% to 10%Insurance: $3000 (annual $500 per door)Water: $3240 ($45 per door - typical in city)Trash: $1,800 ($25 per door - complete guess)$12K for improvements ($2k per door)20 year note @ 5% with 20% down (assuming full asking price)2% Closing costs______________________________________________________________My numbers show a Cap Rate of 5.7%, cash on cash return of -5.12% and -$1,668 of annual cash flow. 

They want to close quick, and they want you emotional, these are their normal business operations.

Canadian real estate and financial instructions do not operate like they do in the estates.

If you're generating active income( flips and wholesale) you'll want to potentially look into a corp. 

The return from a rental will generate next to no income relatively speaking.

I live and operate in separate states which i believe are extremely different.2.

This property has not been operating or declared as a rental, so 1031 is not applicable.

When your gut starts telling you how to operate your business take a couple of Tums.