You’ll still owe taxes on rental income.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

you are kind of dealing with three diffrent issues here, the thing about not being a legal three unit, super easy don't buy something that's not legal, and your agent really shouldn't be encouring you to break the law, the issues with properties being beat up, the vast majority of multi unit's that sell have some wear & tear that's often the reason for selling, being a tired landlord, if you want turn key, you are proably looking more single family homes or paying big dollars for a turn key multi if it even exists in your market, 3rd we can debate the pro's or con's of this this market but youve hired and agent and 99% of agents are going to tell you its a great time to buy, i'm usually more measured but that's because I have a deep psychological problem in which I care more about being intellectually honest than making money, most agent's however are not afflicted with this disease so your gonna have to make this decision for yourself before you hire any agent.

Following the 4% rule, $2M invested conservatively is like $80k before taxes.

While dodd frank may not apply, you still have to follow many consumer finance laws, such as making sure the borrower has the ability to repay, sending them proper statements, tax forms, escrow anaylsis etc.

A 1031 exchange, also known as a like-kind exchange, allows taxpayers to defer capital gains taxes on the sale of certain types of property if they reinvest the proceeds into a similar type of property.

*Disclaimer, each state has different laws, so check those for the state you are investing in.Many investors run from mobile home parks with too many park-owned homes. 

a lot of times the numbers in those lower cost areas will look great on paper... and then 10 years of cash flow will get consumed by capex, vacancy, turnover, tax increases.

Hi guys, sorry if I am posting in a wrong forum (There used to be local forums, somehow I cant find those anymore)...Does anybody know, if I wanted to transfer a house into an LLC in Indiana, is there a transfer tax?

Plus you won't need to provide tax returns or paystubs, lenders will look at the return on investment of the property itself.