You will essentially "freeze" your funds by buying put options to protect you from the downside and then borrow against your account.

Alternative to the LLC with scorp electionI see 3 downsides to running with the LLC with scorp election.1 Separate tax return for each LLC and yourself.2 Unemployment tax on your income- although limited to $8,5003 Ambiguity on what a reasonable salary is for a house flipper.For number 3, allow me to expand on my confusion.

Yea that's the down side then, but I would say after 36 monthly payments at maybe an extra $100-$150 each added with the deposit and amortization and appreciation factored in to the purchase price you should have made plenty of money to assist in buying a new place.

I'll start by saying it is my understanding that when buying property in the $20k-60k range, I'll be bidding against cash-buyers. Let's say I find a $50k property I like and I pay cash, then take out a HELOC. Then I f...

The only downside I could see is increased break ins at night to get tools etc, so just make sure things are secure and your contractor locks up!

Especially when you have too many properties or can't otherwise qualify for standard bank money.The downside is that it's not as cheap as fannie/freddie bank money.

Too many "what if" down-sides for my liking, and I believe anyone who YOU try to Wholesale it to will feel the same.

The downside is that it seems to move apart over time.

Down Side": no income coming in for the (hopefully very long) foreseeable future.My question...

I see only upside, and do downside to this approach.