Our monthly payment was $530/mo for P&I and we paid taxes and insurance annually of around $2300.

Our monthly payment was $530/mo for P&I and we paid taxes and insurance annually of around $2300.

I am about to start the renovation of a house I own.I'll take a builder's risk insurance to get insurance protections during the construction.There is a mortgage on that house.I'll have the mortgagee's name on the builder' risk insurance policy I'll take.Question: Will the insurance provider for the builder's risk insurance notify the mortgage company of the insurance I am taking ?

BTW, i have extra liability insurance, due to no LLC protection.

Considering the deal was completed in December, the lender required the full amount of a years worth of home insurance to be paid.

While it has been a great learning experience about flood zones, nearly $5,000 a year in flood insurance kind of hurt the cash flow.

Licensed and insured GC's with a good reputation are worth their cost.

Deduct your monthly mortgage payments, taxes, insurance, repairs, cap ex, management, vacancy, misc. from gross rent to obtain your monthly cash flow.

After speaking with the seller, who is an 72 year old real estate investor looking to move on to the next chapter of his life, he give me some information about the property: rent roll is $103,000 annually, occupancy is 100% and currently there is a wait list, there is no property management company (he manages the property himself), cap ex, insurance, and taxes are roughly $21,000. the 20 unit complex is split among three building where two building have roofs that are eight years old and one building's roof is 18 but "in perfect condition", each tenant is responsible for their own water, sewer, electricity leaving the seller only responsible for taxes, insurance and upkeep. 

This stands in direct opposition to a capital intensive industry such as manufacturing where employee and owner skill may be less important than the company's fixed asset profile.While S179 is a valid strategy in the attempt to drive a taxpayer's taxable income below the 'threshold amount' so the SSTB receives the un-phased out Sec 199A deduction, a SSTB may not have the investments in fixed assets necessary to drive them below the threshold during the year unless they're already very close to the threshold.Some other ideas for taxpayers owning a SSTB to lower their taxable income:Roll taxable bonds into tax-exempt bonds.Life insurance & annuities.Real estate (it's BP after all).Oil and gas investments.Charitable gifts (including CRTs).Gifts to taxpayers with lower taxable income (powerful option is to gift a percentage of the business to a trust).If a SSTB is well above the threshold, a compelling case could be made that the business should be a C Corp in the current tax environment.