Schedule E or C usually).If you are setting up a multi-member LLC with investors or other partners, then you should probably consult an attorney who really knows what should go into a good operating agreement for a multi-member LLC.  

They are operating illegally at that point.  

Here's an example of how I'm thinking it should be done:If assumed vacancy is 5% on average at stable operating conditions and expenses are $20,000 per year, then tenant reimbursements should be $20,000 x 95% = $19,000 per year.I haven't seen any example DCF's do it that way though.

I would own and operate it. 

@Julie Clark my friend and are I setting up a wholesaling operation in the Seattle area. perhaps you could connect with him.

Hey There - very generally speaking, you need to present the vendor with a Sale Tax Exemption Certificate, and these are specific by the state you operate in.  

BP'ers investing in KC - I am also looking to invest in the area.Have already developed contacts for Property Management, Agents, Turn Key providers and looking to broaden my network.Currently focusing in INdependence, some areas of the urban core, Raytown, North Kansas CIty.Looking for Multifamily (2, 4, 6 Plexes) with moderate to little renovation needed.

Here are some things to consider.Coin operated Laundry - You make money, but you have to collect coins and machines are subject to vandalism/theft. 

Yes, do I beef in turnkey, yes I do, because it can work if the process in place with your operator is correct. 

I am Brad Moncado, co founder of the Springfield, Missouri Real Estate Investor Group ( REInvestorGroup.com ), operate as a full time Real Estate Investor completing wholesale deals, flip homes, new construction, lease options and more.