You have three choices.S, C and LLC.It will depend on the business, the assets, if there are employees, what employee benefits you want to set up and the administration.I agree with the advice to consult a professional.

Without utilities half of an inspection is worthless, and the useful half could be easily determined by yourself with a diligent eye.I've actually NEVER had an investor have a professional inspection done on a wholesale deal.

Some investors use the net plus pay for a skip tracer as some have access to professional databases that are closed to the public.

Hi...The 4 plex is not in California..Well I came to a conclusion in my own quirky non professional way...it will probably seem silly but here it is: It seems that if I put $80,000 down and then spent another 200,000 over the course of 20 years for all the stuff that comes up...( the building is brand new with all the warranties on the roof etc etc ) there is a good chance I will end up with a building worth around maybe $650,000 ...that means ( in a very very innacurate way) my money was more than doubled and it took TWENTY YEARS.....thats not very good and I had all those headaches too.meanwhile in 20 years just $130,000 in a simple Vanguard index fund getting 11% a year and being left alone to compound becomes around a million dollars.This seems to clarify it for me.....

At the same time there are property investors with very large portfolios (20,000) so there must be something that works.I think what you will find is newer investors or amateurs who are not on top of their game get into more trouble than seasoned investors and professional property managers.Warning: watch out for real estate agents who manage part time while filling in the gaps between sales.

Get some tax advice from a professional.

It is possible to operate legally and professionally in this area if you have the resources to respond to a DOS.John Corey

He is used alot by realtors who love his confidence and professional approach.I consider him extremely knowledgeable and one of the few in his field in our area that is competent.

Or pay a professional to advise what is best for your situation.A sole member LLC does not exist for tax purposes.

Besides, a professional will probably see things wrong that you do not see as a problem.As far as the income, I understand your apprehension about inflated numbers.