I kind of understand this method as far as having to pay yourself a reasonable salary and then be taxed only on that, but the question that I have is whether or not you have to follow all the formalities of a full blown S-Corp, or is it the same as an LLC with just a better tax advantage?

It’s a major advantage when making an offer, I state that I will close as fast as the ink dries.

You touted the tax advantages of this property, but when All Cash explained that you were really trading dollars for quarters, you blew that off too.

So far despite Real Estate downturn this is by far our best year, it looks like for us the downturn work to our advantage.

All of this doesn't even consider the tenant paydown of the principal, the tax advantages, etc.That's what I like about rentals.

That being said, what are the advantages/dis of renting or buying- say a foreclousre we have been looking into?

You may want to use an attorney and/or a real estate agent to facilitate the transaction as well as paying your own appraiser so that other members of the family are assured that everything was above board and you were not taking advantage of her.

This is quite a bit of work but when the property is appraised I am able to finance 100% of the cost of construction and have a new property.One advantage of this is that as I am in control of the building process, thus I am in control of the quality of construction and the materials that are used.

It has the advantage of being more flexible in the payout of profit and loss, as it can be done in different ratios than ownership.

I have two years of tax returns, but it take advantage of all my writeoffs, so they only say 13k and 13k.