@Tamka Brown Regarding the networking company, you can deduct expenses but related to the income that the company is producing.

Any leeway between winning the auction and having to produce funds makes completing a 1031 easier.

The 2 unit home is now on track to producing consistent rental income with a total of 6 tenants.

Variations on this question are frequently posted, demonstrating how confusing the topic is.Bottom line - forming an LLC does not change your tax situation unless you elect to have it taxed as a corporation - which YOU (Andrew Namkoong) probably won't.Whatever INCOME your real estate investments produce will pass through to your individual income tax return, and it will be added to your other sources of income and taxed per the table you provided (ASSUMING you are married and filing jointly - since you provided the federal tax table for married filing jointly.)I recommend getting the BP Tax Book discussed in the thread pinned at the top of this forum.

IE, drug rehab,  inmate half way houses, mentally ill, healthy elderly, domestic intervention housing for women with children,  veterans, or housing for retired nuns. 

It does not happen on day 1 (not negative day one if bought right, but not crazy high) but it does come with time as rent increases at a healthy clip while most other expenses do not scale as such.

For reference, I have a building that produces around $45k NOI, including the ongoing renovations and I paid $335k for it. 

I heard Tim Shiner speak and liked his approach of getting as many "doors" or cash producing assets as possible, while still maintaining a emergency fund.

If this needs to be a producer, and you can't take a rehab that goes over-budget, or a house that takes too long to sell, there are easier, more formulaic ways to make money.

When you have $10 Million to invest the main problem for most people is capital preservation rather than producing a large return.