They have an office, marketing, software, they've gotta pay gas, license maintainence, and then everyone's gotta get paid and with employer share of payroll tax as well.

Hi All.Is there any benefit to setting up an Single Member LLC in a state where there is no state income tax (and my current residence so I have an address) to hold properties from a state with an income tax? As

HELOCs should pay that tax but you better check with them first.There should not be a Transfer Tax, those are on Sales of a building (or home).I think you must mean "Mortgage Recording Tax."A

While making some updates and selling probably makes the most sense in their case, they are not interested in selling - in part due to projected cap gains tax as the home is paid off and the basis is quite low (and/or perhaps they would like to pass it down, but want the cash flow?). 

Crazy thing is the appraisal value per the taxing authority is  $90,940 which, apart from their 'fuzzy math' in calculating the property tax, puts the tax as a percentage of value at a whopping 6.87%!!

Also, since the real estate is held within the Roth account and has already been taxed, I am not sure you need to take 25% off the net rents for income tax as long as it stays within the Roth (though don't quote me on that, haha).Regarding your underlying assumptions.

My take on this is to invest in real estate like a drunken sailor in the dips, as real estate becomes more expensive throughout the recovery save as much money in your ROTH and pre tax as possible and buy mortgage notes and do hard money lending deals and save cash for the next collapse.

I have not been to Uruguay yet but have you ever seen the prices in places like Sao Paulo?

One thing I think I see missing is the 3.4% tax added to fund the Affordable care act that is separate from fed capital gains and whatever state cap gains tax which isn't an issue in Fl but could be as high as 10%.On the other side of things - if you're talking about flipping activity you're talking ordinary income tax but also self employement tax as well - another 15%.So 50% might be an extreme worst case scenario but apart from other tax saving strategies the sting can still feel that bad.Takeaway - strategize and pay only what you have to legally.

There will also be a little higher title ins cost as well as transfer/stamp tax as well.As a long-term cap gain, my example should be a $2500-ish issue.