Trade or Business: In defining “unrelated trade or business,” the regulations start with the concept of “trade or business” as used by Internal Revenue Code Section 162, which allows deductions for expenses paid or incurred “in carrying on any trade or business.”Regularly Carried On: The UBIT rules generally only applies to income of an unrelated trade or business that is “regularly carried on” by an organization.

For those its not organic YOY increase rather its because of major rehab that one has to do to recover buying price + rehab. 

Spending more time on here organically cultivating relationships is an idea of mine I’ve had for about a year and haven’t stuck to.

Rehab has just begun, and will certainly take some time as this is no small project, but the return is going to be well worth the squeeze.

In this case, it appears that you will be doing business in CA.Just be mindful that CA does require an $800 fee for all LLC's doing business in CA or organized in CA.You may want to consider an asset protection alternative. 

However, we have begun to toy with the idea of keeping it as a short-term rental instead.I know it can't remain in our flip LLC if we decide to do this or it will negatively affect the taxes & liability protection.However, I am wondering if it would be better to :1.

We have begun to now manage property for other owners. 

@Jill F. you are very organized and would certainly need to be to scale the way you are.

DM me and we can setup a time to help you get organized for future transactions!

As you provide value to an experienced investor, you'll have organic conversations that turn into mentorship.