To replace your income you need to flip a lot of houses, I'd do the math with an average 10-15% profit margin, because you have to account for some turds.The other opportunity is to change your job and take out the element that you hate.

I think some hosts would account for the cost of purchasing good quality bottled water as well, which is why the Brita water pitcher is popular. 

Ultimately, consulting with a real estate focused accountant is the move here, but this should be a helpful primer.

You also have K-1s and overall management of the fund to account for.Thus the question I asked is, how do you make money and what is the exit strategy as when you go to sell these loans they will also sell at a discount. 

I’d recommend building relationships with agents and accountants familiar with these markets too—state-specific tax strategies could make a big difference in your bottom line.I’m excited to see how this plays out for you!

This could be a great way to get started as you'll be at the property everyday and by living in the property not only will you be there firsthand to oversee the work being done, but you may also find new potential issues while living there.If you're looking to do this, I'd recommend a 203k loan to purchase the property and get some rehab funds. you'll just need to live in the property for a year before being able to lease it out to a tenant.

@Jake AndronicoI’ve looked into them but have never executed one.Let me say they will be expensive and complicated.I think what you will find if one is trying to defer $50,000 to $100,000 in gain, it’s not going to be worth the time and trouble.On the other hand, if client is trying to defer gain of $500,000 to $1,000,000, it’s worth the time and trouble.I use First American Exchange for my own account a dozen times and they have been right on the money.Google them and reach out.Arn

Remember, you may be tied up in several houses with little cash, so it is important to think of all possible situations.Who is doing the accounting? 

Back when a close friend of mine; he’s a commercial landlord in Phoenix who once took on a quircky triplex in a tough neighborhood..decided to reshuffle his insurance setup, I saw firsthand how getting stuck in a clunky policy can really stall your forward momentum.

I’m an out-of-state investor working on building my online presence, and I’m currently running into an issue with setting up my Google My Business (GMB) account.