IF you ever distribute it from the corp to yourself personally it is subject to tax at the corporate level between the difference of adjusted basis and fair market value.

I've also been considering this concept here in Round Rock, since Austin is not convenient for me on a daily basis. 

Get on BP every day, make yourself read everything, listen to the podcasts, go to local meetings, etc.

That means you go back into them on a regular basis.

It will provide a lot of information and caveats that occur everyday.

The numbers don't make sense, unless you can find a very good deal where your cost basis is low enough to give you good returns.

A seasoned investor and/or realtor deal with the real market on a daily basis and actually know if they can make money or sell it quickly at that price.

That means the TP would have a debt basis in a pass through entity; however, if a C-corp is used it would be a capital contribution and still leaves issues that are beyond the scope of this post.

I attend a half dozen or so on a semi-regular basis (depending on topic).

Rob K.Your cost basis is still $51K, so the property still meets the 2% of purchase price maker as long as you hold it and continue to rent it at that amount ... the increase in property taxes will erode your margin a little.Do you have a better use for the locked in equity?