At lower profit levels, there're minimal or no tax benefits.If you're married, an LLC filing a partnership return may be the best option.It is acceptable to not have any business entity when you start, as long as legal liability is addressed with insurance.

If they are at 4-6%, you can certainly  make a bigger return in real estate.

I am looking to put down as little as possible to increase cash on cash return and have money left over for reno.

What I do know is that it provided our worst buy n hold RE return. 

Under that same description you will also find lenders that will approve you based on bank cash in flow, if you are self employed, rather than your net income on your tax returns. 

But I could go a little higher if the return is worth it.

He said he'd return keys to me on Monday 9/10. 

If it includes everything, including contingencies, I might hold onto it considering the market - still a risk though.If it doesn't include any of that extra stuff, I would strongly consider exiting the property somehow.Run the numbers, see what the return on your investment is. 

@John Choe, What I do with potential clients is sit down and have them pencil out their income/expenses/allowances on the property they're wanting to sell so they can have an accurate picture of what they're true income/return really is. 

The owner just repeatedly paid the (steep) fine and returned to business as usual few weeks later.