If you can sell the house now and make a profit then the annualized return will be much better than holding the deal for over a year.Also - getting a loan is going to cost you money in closing and fees.

My cash on cash return (20% down if financing the purchase) would be around 25%.

If I can't make at least 10% annual cash on cash return I won't purchase.

But, even though they are under same LLC, they will be reported under different schedule or part of the return, so it's not a big deal from the tax preparation perspective.

But that shouldn't really affect your ultimate returns in any meaningful manner even if you use IRR method.  

The rest gets returned.

All units electric individually metered with all other utilities being sub-net split between residences makes for higher returns.

Investing for returns has become a family affair as our kids (10 and 6) are taking active roles.

Assumptions: Lowest Appraisal Loan INCOME AND RATE OF RETURN Purchase Price 154,900.00 Loan Amount 123,920.00 Down Payment 30,980.00 Estimated Annnual Gross Rents 15,540.00 Estimated Annual Equity Paydown 1,700.18 Estimated Annual Principal & Interest ($8,350.19) Estimated Annual Property Taxes ($3,000.00) Estimated Annual Homeowners Insurance ($746.78) Estimated Annual HOA Dues $0.00 Estimated Annual Management Fees ($1,877.75) Utility costs to be paid by landlord (if any) Annual $0.00 Lawn mainteannce costs to be paid by landlord (if any) Annual $0.00 Indirect Vacancy Allowance Annual ($) ($155.40) Repair Allowance Annual ($) ($621.60) Misc. bucket for costs per month Annual ($60.00) Estimated Annual Net Expenses ($14,811.72) SUMMARY OF RETURNS Estimated Annual Gross Income $2,428.46 Estimated Monthly Gross Income $202.37 Estimated Annual Gross ROI 7.84% ESTIMATE OF CASH FLOW Loan Amount 123,920.00 Interest Rate 5.40% Loan Term in Months 360 Estimated Principal & Interest ($695.85) Estimated Monthly Taxes ($250.00) Estimated Monthly Homeowners Insurance ($62.23) Estimated Monthly HOA Dues $0.00 Estimated Monthly - MISC ($69.75) Estimated Monthly Management Fees ($156.48) SUMMARY OF CASH FLOW Estimated Monthly Gross Cash Flow $60.69

If an S Corp election was made, then it would be an S Corp tax return.