Yes, do the tax exchange if you can.  

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Focus on tax-saving strategies such as cost segregation studies and bonus depreciation to accelerate deductions.By qualifying as a Real Estate Professional (spending 750+ hours annually and materially participating), you can offset your wife’s S-Corp income with real estate losses, reducing your tax liability.

On your tax return you would report the proceeds, subtract costs and proceeds paid to seller, then the remaining profit would be your flat fee.

It also depends if your tenants have good credit they care about.

but if i go in a LLC with them i get hit with the tax from the sale of the homeThe GC and the flipper were just going to split the profits from the sale of the home and they were going to pay me 2%/12% for the duration of the build. 

At year end you’ll get a summary and a tax form.

I’m in the 33% tax bracket through my real job and this could be a big difference in taxes owed if we sold the property?

OPIf you have a company with a Sales tax license.  

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