Justin: The {so called} 50% rule {of thumb} serves only to allow a quick screening of a property for the purpose of determining whether it deserves a full analysis.

So that when you odd jobs or smaller stuff needs to be done on the rentals you can then pay yourself to do the work And invoice that LLC which would then be an expense for tax purposes.

And, what is your purpose, you do realize that buying a note isn't buying the property and amounts over the UPB may not be going to you?

Seems like these are basically useless for your purposes.

Question for investors who borrow from peer-to-peer lenders or private lenders for the purpose of buy and hold (I know Account Closed and Mehran K. and Dawn Anastasi have written/podcasted about these types of loans).

Doing independent research on this should ONLY be for the purpose of ensuring that you ask all the right questions to an attorney.

I tell them I am a part time agent only because of lending purposes, which is true.

I'm not here to sell or promote anything.

If you just want something more professional, separation legally from yourself, and do it for separate taxes purposes (like me) save the money.

I'd suggest not getting into the popular thinking or promotion of doing a 1031 until you get with a good tax advisor, one who has no interest in you doing one, and ensure that your marriage to the property type will last. 1031s have a valid place in your planning when it is truly beneficial, it's just that it isn't always.