My intentions and ambitions are to invest in flipping and hold-on-to residential properties (1-4 units) and eventually get more involved in commercial investments once I gain more experience.

I would ensure you get a formal partner agreement that spells out roles/responsibilities, timing, taxes (capital gains), cash flow, etc.

I think it provides a balances approach, and allows you to gain from the benefits of the two different strategies (they work together rather well).

For example, if the remaining mortgage is $600,000 and the Short Sale is $300,000, the home owner will need to pay taxes on the $300,000 as a gain.

If you can answer this question for me we can further this conversation if my gains don't take a huge tax hit."

Do you want to be active or passive?

Will you have high turn over, evictions and people trashing the property which makes those very nice looking throretical yields a struggle and turns your passive investment into a not at all passive income.

Many use an LLC for buy and hold because it's passive income.

I have always been interested in real estate, but was discouraged during the economic downturn and lack of education about real estate investing.I want to begin with earned income methods to pay off some debt, then use the money from earned income methods to fund passive income methods.I look forward to networking and learning from all of you!!

I'm in IT and am completely tired of the rat race, the computer, etc...I made my goal this year to aggressively get more passive income so I can be a little more free..best of luck....one investment at a time.