The cash is earning 5% -6% in rewards checking accounts and that really offsets the gains on the small debt relief.

My gain is based on the investments.

The $5K is capital gains, either long or short.

To find the truth, gain knowledge, share knowledge, network, and of course, make deals.I'm glad we've got you as a member of the community and I expect that we'll be seeing a lot more of you in the Foreclosure and REO forum areas.Welcome to BiggerPockets!

There may even be a tax benefit to changing the character of ordinary income to passive income.

What they will most likely have you do if you want the property in the LLC's name is have you sign with the LLC as a member and guaranty the loan... sort of like co-signing... really that's what it is.You now have the LLC's feet wet and gaining credit.

Or rent it out and hope to gain equity over time via the principle payments and hopefully appreciation.Please continue to let me know your thoughts!

I hope to gain more knowledge in this industry through people with alot more experience.

(using active verbs rather than passive makes your writing more immediate, more exciting, more enjoyable.)

Has anyone gone down this track, of suffering the first few years, and then gaining a nice return, and how long do you estimate I'd need to eat ramon noodles for?