Your profit will be treated as Capital Gains.But it will be Short Term Capital Gains instead of Long Term Capital Gains because you owned the property for less than one year and a day.You will report the transaction on Schedule D, Capital Gains and Losses, and not on Schedule C, Business Income, because buying and selling one house does not make you a dealer.That means that you will not be subject to Self Employment taxes.The tax rate that you will pay on Short Term Capital Gains will be the same as your ordinary income tax rate.I hope this helps.Good Luck.Michael Lantrip

Hi Ken M. the property was built in the 90's, therefore, it already has a C of O.

That doesn't mean you can't invest there, but you just need to understand the fact that its a C neighborhood.

If you own other properties, you can run the travel expenses through the business entity you have set up there or file with a Schedule C in a new business entity.  

Also, the house probably needs $30k of work done to it (roof, a/c, fence, backyard patio, etc).

What class of prop, A, B C, D?

.), go to top sub-market in those markets, stay in class C/B- because people will always need a place to live, run sensitivity analysis on interest rates, caps, rent rates, etc. to make sure DSCR stays above 1.25 for refinance purposes and Return on Equity meets minimum requirements, and some may say keep hold periods to minimum (grab value and get out).I'm sure there are posts about tech/start-up bubble, but it will be interesting to see how that plays out, and how a bust might affect national economy.As always, keep diversified.

I hired three contractors one operates as an S-Corporation (so no 1099), another operates as a C-Corporation (no 1099), the third is only an LLC - so I will need to send him one.  

A/C is really uncommon for rental homes up here but the home I am looking at purchasing does have A/C, as well as a two-car garage.  

Most syndications are 506(c) simply because it's easier and are less of a headache due to it being easier to vet accredited investors vs sophisticated investors.