So far I have sent an e-mail to my RE attorney, the title company I use and talked with the neighboring owner and the county use administrator.

This is how the Fed Govt looves us investors.It is 1040 Schedule E, Line 10Legal and other professional feesThat is where that expense goes.

Hi Doug,That directive probably came from the principal broker the agent you were talking too is under.Head brokers have what is called E and O insurance which stands for (errors and omissions).Wholesaling like some other forms of investing is highly speculative and often times many things can go wrong.

Disregarded entity: Reports on Form Schedule E attached to the personal 1040 pays no self employment tax.

I've been e-mailing with my RE attorney and am waiting for a call back today.Thanks

Rich Dad Poor DadRich Dads Cash Flow QuadrantRich Dads Increase your financial IQThe Real Book of Real EstateThe ABC’s of RE InvestingThe ABC’s of PMRich Dad RE Tax AdvantagesThe E-MythThe 4 Hour Work Weekhttp://flip2freedomacademy.com - free e-bookFlip2freedom episode 77[http://www.flip2freedom.com/a-3-step-formula-to-a-successful-balanced-and-insanely-profitable-2012/] - podcast - LISTEN TO THIS TODAY!

Hi Mark E , and welcome to BP!

Calling realtors you have a relationship with, e mail blasts to realtors with " coming in 30 days " heads up...

John E. ...Just thinking about real estate at such a young age is Awesomet!!

.$4,600/mo Income * 41% = $1,886Minus monthly debts (car, credit cars, college, HELOC) = $817Left over = Maximum mortgage payment (PITI) on a new property $1,069That is even assuming your rental properties are break even - if you report a loss on your schedule E it will take that amount out of your income.But if your car and credit cards were paid off your monthly debt would be $325 so your PITI max is now $1,561 which equates to the ability to buy about $90k more houseI also recommend during this time looking at your credit report, fighting and late payments or bad remarks so that when you are ready your credit it as best as can be