The simple answer to "Do I have to pay tax" is.....

Our goal is simple, to build streams of passive income that allow us financial freedom.

Keeping it simple, what would you rather do: tie up $200,000 or $32,000? 

Usually these expenses are simple to estimate.On the other side you have variable expenses. 

@Alex Murphy You will want to set up a simple LLC regardless if you put it in your personal name of the name of the LLC.

The attorney's here in GA charge North of $1700 to handle barment (which I think is outrageous considering how simple it is), so for two properties I'm looking at paying $3400.Now, I know exactly how to do every piece of the barment myself but I'm holding the property in a corporation and the laws in GA prohibit a corporate owner or officer from representing the corporation on legal matters (which is nuts to me!).

@TJ VerdiglionePut it in simple terms - say you owned a first position note that had a balance of $400k on one World Trade Center building which has a value of $5B.If it forecloses and sells for $5B, you get the balance only (400k) you don’t get $5B.

Low capital investment, simple conversion to "add" 4th bedroom, multi-family zoned lot, 150ft to light rail transit, across street from open space How did you find this deal and how did you negotiate it?

I think @Bill F. is probably correct here, and simple equity position is probably the right answer.

I'll keep this short and simple.