This means the profit is taxed as ordinary income (not capital gain) and subject to self-employment tax.If, however, you're portfolio shows a history of rentals, you intended to get into this property as a rental but ultimately decided to sell for whatever reason, and this "flip" is not a regular occurrence, you may be able to avoid classifying it as a flip subject to ordinary income and SE tax.Definitely make sure to speak to your CPA to get specific advice on your personal situation.

We have quickly realized why the BRRR strategy is awesome for being able to scale faster.It will be some time before we have enough cash to buy a property in cash and fund rehab costs.However, with the renovations we did on our primary residence and the increases in the market, we could probably access around $100k of equity thru a HELOC.I understand the risk of having the HELOC maxed out when the market starts to decline, but what about just using it as supplemental funds for acquisition/ rehabs and then paying it mostly down after refinancing the properties..any negatives?

But ultimately I'd ensure it all hit one main rental account first. 

I am currently a home owner and recently became more interested in finding a way to build a passive income to better support my family and ultimately achieve financial freedom.

I'm thinking turn key would eliminate/delay some of the capex and maintenance and ultimately make the vacancies easier to fill but then I'm getting into more expensive territory.

Ultimately, I think I'd like to grow my business for a few more years, sell it, and focus on building a real estate portfolio. 

I don't have 20% to put down (could maybe put 10% of total cost), so I had initially through FHA (I will live in the property) construction loan, however now I am realizing the FHA loan only allows financing for 1 unit dwellings.Does anyone else see a way to do this with low money down?

If and when we really do have a bubble and it bursts is up to the market ultimately and no one can really time it.

If they don't pay, the responsibility ultimately falls to you, the landlord?

Some houses as you move up the coast are still stick built but if they're in High Velocity Hurricane Zones the amount of strapping required almost cancels out any savings  you would realize from wood framing.1.