Hey Jason -As you realized, "marginal tax rate" just means the regular tax rate that people are typically subjected to.For 2009, here is what people will pay based on their level of income:http://www.taxfoundation.org/publications/show/151.htmlRemember, it's a marginal rate, so you pay on a sliding scale as your income increases (higher dollars are taxed more than lower dollars)...not a flat percentage.Everyone in this scenario (you and your parents) will be paying based on the marginal tax rates, not a flat percentage -- which would be the case if the flips were being taxed as a long-term capital gain.And the major tax benefit of the S-Corp election is that your parents only have to pay FICA on part of the income.As for what is "reasonable," my CPA suggests that if I were to take the equivalent of a realtor's commission on each transaction, I could reasonably claim that as my salary and the rest as a dividend.

That's somewhat funny, bank should cover it under FDIC as someone  fraudulently cashed the check.Normally banks don't let that slide unless its in a batch run of checks and no one noticed.

Seller has provided me the majority of the collateral files and I found that the address listed on the original note, DOT and subsequent assignments/allonges are incorrect.

If he intends to exchange into your LLC which holds Real Property, and subsequently he will be the sole owner of the LLC then it would be a good exchange.

I think some people bet on me not running the check or perhaps I'll let some things slide.. but regardless I always feel bad when someone spends their money on an application they know they aren't going to qualify for.

No income = no loan.If your income is new (i.e. been at a job 6 months but the income would be enough to qualify), then maybe you could try going to local banks and see if they'll let you slide by on the typical 2 year income requirement (i.e. averaging 2 years of income).Outside of that, I don't know of too many other ways you can pull an investment off.

I had a question about the equity in the subsequent properties to be purchased.  

A great deal and learning experience when combined with the slide presentations available for download.

Including Texas and CaliforniaLooks to me like we are at "Euphoria" sliding toward "Anxiety" - hang on for the ride

Sliding door rail flips up for a flat roll out exit.