Having self-employment activity (with or without an LLC) allows you to setup the plan as long as you do not have any full-time non-owner employees.

The whole 1, 2, 3 % value really varies on size of deal due to cap/ex costs.

These areas have the best combination of cash flow, appreciation potential (never guaranteed), exit options (you might be able to sell to an owner occupant rather than another investor down the road = higher sales price), and stably-employed tenant pools.

@Franklin Marte, we need some details.What size building?

Hello,I'm wondering if people 1) use Automated Valuation Models (AVM) in the small-medium size mulitfamily space to spot under-valued properties by comparing the AVM price (the predicted appraisal value) to the list price (or the price you think you could reasonably buy the property at) and buying at a large difference (e.g. the Zillow Zestimate or Enodo: https://www.enodoinc.com/e-valuation.html) and 2) use any software to make a data-backed prediction of the ROI of various repairs for a BRRR approach (e.g.

Here are some of the numbers we were thinking about when considering this property.I don't have a lot of experience estimating construction costs, but it seems like what would be the most worthwhile for this property would be to rebuild into a SFH or a duplex the size and style of the neighboring properties which are estimated on redfin at $667K to $700K (those are 3br/2.5ba and 4br/2.5ba respectively). 

Other side same size needs approximately 30k in rehab and will rent for $825+.  

Will I pay self employment tax from any profit on this?

Funds can be wire transferred, but to get a mortgage here a bank has to verify funds, employment, credit etc.

I would suggest making sure that you have a unit that has a nice sized yard that you could section off with a fence and have access from your unit.