Our avg monthly expenses with reserves is around $1500 (mortgage, taxes, insurance, utilities, reserves ect).  

ARV - Profit - Repair Cost -Reserve Cost- Cost of Debt- Fees = "Strike Price"Thank you for the insight. 

How do you pay for the tax and insurance?

If you need an LLC for tax reasons later, you can move title into an LLC later for a couple hundred bucks.

If you are setting aside funds for capex, taxes, insurance, or other expenses that don't occur monthly, transfer those funds to Savings each month and hold them there until it's time to spend them.

In non-community property states a husband/wife LLC is supposed to be treated as a partnership  And transferring from a revocable trust (reported on your 1031) to a partnership LLC (that files it's own tax return) is changing the tax payer. 

*Renovation Costs – Includes labor, materials, permits, and unexpected repairs*Holding Costs — Utilities, property taxes, and financing costs during the renovation time.

However , properties taxes are due like roughly 12k for the two lots. 

That had even a passing resemblance to tax returns or financial statements4.

The single biggest advantage of selling your homestead is that you can take all the Cap gain tax free if you have lived in the home as your homestead for 2 of the last 5 years.