And should your plan include a later sale, you will have to pay back all that depreciation at a possibly hight tax rate.

How did you determine the ARV for the property…in other words…what you plan to sell it for?

I am a 16 year old planning to form an LLC under my parents name in order to qualify for business credit to cover the down payment on my first investment property I will also pair the business credit I am able to qualify for with cash and refinance to pay off the down payment when the interest starts to kick in but I am wondering if when applying for a FHA loan on an investment property if they require income to qualify or if they will accept it because I will be renting and covering the mortgage with the rent and how that all works when qualifying and if this is even possible. 

Spend a lot of time on google and youtube to determine what type of offering/company you want to setup and how you want it structured.

As I get more confident in my real estate knowledge I plan to actively learn by going to real estate meet-ups and meeting up with some local investors. 

You could have everyone apply and spend the money.

Now for planning purposes I spread the sizes of properties I have in this market.

Hi @Sahil Raina I would suggest a LLC if for sure neither of you plan to live in it.

The plan is to sell primary residence in order to have the equity in cash and utilize that cash to fund the multi family purchase and have operating capital. 

If neighborhood class is important and you are planning on investing any significant amount of money, then its worth having boots on the ground to see, smell, and feel the area.