., but SFRs are an excellent investment in up and coming areas like North Winton, or established blue collar suburbs line E. irondequoit.

I would bet the cash on cash return will not be a calculation you will have to worry about on this deal if you do not have ANY costs to you going into the deal outside of whatever is financed.

I am planning on speaking with Building and Safety DptHealth DptFire DptI have a builder and contractor lined up already. 

I called the Dallas water utility, and they are saying it will cost over $5,000 to install a separate water line and meter.

@Derek Dombeck - you could be right, something on the loan numbers aren't lining up.

There is also the famous Dave Ramsey line of books that have helped millions. 

I know it is easy to get frustrated with your investment returns on the line. 

Note that this case was enacted before the passive activity rules were enacted in the 1986 tax reform bill and likewise before the 1993 creation of the real estate professional designation.But at the end of the day, if you're looking for primary authority in the code or regs saying, "You don't need to be a real estate professional to claim the home office deduction for rental activities," you're not going to find it.Your best bet would be to challenge the CPA as to why he believes the real estate professional designation is necessary. 

My first two deals I used a line of credit.

Bottom line is unless you have few rentals with high equity, you dont have to think about the LLC.