How should we go about doing this and how should we record rental income for the first year and record taxes?

Also, if your parents are listed as the owner, then they will owe any taxes on any taxable income from the rents, as well as being able to deduct the depreciation from that income. 

Or worse yet what if the person is "willing to pay above market rent" because they have bad credit (doesn't intend to pay), no verifiable income (can't pay), or a track record for trashing rentals?

If you were qualified for a VA loan (no money down), have great credit, six figure income to show the bank, how would you get started on becoming a full time real estate investor in the NEAR term?

Hello AllI have been hiding in the shadows for some time now, faithfully watching webinars every Wednesday night, downloading podcasts to listen in car, and reading reading reading from forums to Kyosaki to John Schaub to BP Beginners Guide to REI and whatever else I can get my hands on.Huge believer in the power of passive income and the teachings of Tim Ferris.

Not true with the larger hotels as they only accept cards but I think on many of these they are very profitable as much of the income is not reported.

You'll have income of $2,800.Monthly Cash Flow is NEGATIVE $350.

I'm considering starting an LLC that I can run rental income and expenses through for the main purpose of starting a retirement plan (probably a solo 401k) so that I can start socking away some income into a tax deferred account.

Will the IRA be subject to self employment taxes (because this is a flip) or will it just be taxed as ordinary income? 

The end goal is to have a substantial amount of passive income as well as build equity, to have additional security for my family in case something were to ever happen to myself or my job.