The process of establishing value is a bit convoluted, but well defined by the statue.

.- When house hacking, be sure to establish a good relationship with your tenants, but avoid "being friends".

Establishing an LLC (why a corp?)

Have the tenant sign off on a move-in checklist to avoid disputes later.If your not using a property management company, you will also want to establish a plan for handling maintenance requests and emergencies.

It helps you establish one economic unit to meet material participation hours.If you are in higher income tax brackets, I suggest getting a multi-member LLC for audit protection.

An Architect can look out for your best interest in the project plus can bring all the Engineers necessary for the build (Civil, Structural, MEP, Sprinkler/Fire suppression, etc.)As far as the build itself, if it's in an established city or town on a tax lot, then you'll need to go through the design and permitting process, gain zoning approval if necessary, and then build up from there.

Call the cops the minute someone breaks in, then they won't have time to establish themselves.

When you have established the operation agreement of the LLC correctly, this will allow you to operate and be protected via the LLC while having access to great financing options.This should be a pretty easy task for an experienced attorney.

Plus, the seasoning of the company can make it easier to secure better credit terms or refinance quickly since lenders often view established entities more favorably.One of the biggest advantages, though, is the flexibility in negotiating the down payment.

Most likely I'll be establishing an LLC.