Originally posted by @Richard C.: That might be the single most wrong thing I have ever read on this site.

Lots of fees and costs that nibble away at the bottom line: Utilities - a/c ran constantly at 70 degrees with doors wide open, running power tools, etc, so that added up to big utility bills.

But those steps are vital b/c they filter out 90% of the opportunities out there. 

You're right @Elizabeth C. this is a great website!

Almost certainly for something along the lines of what @Richard C. mentions.Figuring out how to avoid getting caught doesn't change the fact you're engaging in criminal activity to promote your business.  

In my C class apartments, I change that figure to 40%.hope that helps.  

I think @Richard C. hit the nail on the head.  

The people I know in Baltimore don't want to deal with section 8 anymore, even when they are in Class B- or C+ neighborhoods. 

At some point down the road after you and your brother-in-law are RE moguls, you'll want to make sure your assets are under some sort of corporate veil to protect your personal assets from a law suit.Depending on the state, if you do not purchase the property will an LLC, you could be charged transfer and recordation taxes again when you transfer the real property to your LLC or S-Copr, C-Corp, whatever.

Again, talk with your accountant (maybe a lawyer too) but...One of the biggest challenges I think a lot of 'full time conversion' REIers face is 'how to pay myself in a way that isn't self-employment' ... it becomes a huge deal when you're doing silly little things like, say, getting a cell phone, or a car loan, or a mortgage, or lines of credit... or a credit card...This is where it pays to spend the time and money to set up your LLC/C-Corp/S-Corp correctly so that you can pay yourself on a W2 or through an S-Corp and not have the problems/taxes associated with a 1099.