I would register a corporation, roll your profits back into the corporation for future investments and avoid the cross border taxes.

If your S-Corp produces $200,000 in Pre-Tax profit and you want to defer paying taxes by reinvesting the $200,000 does the following scenario fulfill the requirement?

I walked the outside of the outdated property and snapped some pics, rolled some numbers in my head around:Mid-range ARV around 400knew doors and windows throughout, 15k including entries for good stuff (I know that's high, better to err on the side of caution)fresh paint in/out at $5 per sf for good stuff, call it 9kflooring throughout, 6.2k at $3.50 a sf2 bathrooms, 15k kitchen 20k including appliancesso about 55-60, plus some extra for unforseen and pool, so 65-70k, leaving me an offer of 200-230ishI'm sitting in this driveway for a solid 45 minutes taking notes, running numbers, pulling title info & last sale price/date (Chicago Title mobile app), etc.  

Practicing my number crunching, perhaps this will help:Purchase price: $120,000Cash in: $34,000Gross Rental Income: $1600/mo   $19,200/yrExpenses yearly (percentages off income):Vacancy @8%                 $1,536 Maintenance @5%             $960Management @8%         $1,536Mortgage,Tax,Ins           $9,600Total Exp                       $13,632 Cash Flow                            $5,568Net Operating Income = $19,200 - $13,632 + MortgageCash-on-Cash Return = Pre-Tax Cash Flow / $34,000Didn't know the specifics on some of those.

Already an multi-unit owner, interested in rolling that up into larger investment.

5 - Can all this be done Before the Auction [ Pre-Foreclosure] - like - if I come to know the house has been served a Foreclosure Notice.6 - Lastly - assuming its all done - will this be a normally scheduled closing, with agents and attorneys - so I get the deed and possession.Thank you.

I have the property identified and have been pre approved by 2 banks.  

2% rule is meant as a rule of thumb to pre screen opportunities.

I know how to find all that information out, going to the courts, assessors office, register of deeds, pre foreclose list etc.... but the hardest part that I have encountered is getting the contact information of the owners or next of kin.

Is there a pre-pay penalty with the loan?