The properties here in Boston area and some of the suburbs are expensive unless you go into C class neighborhoods.

Also, be aware that changing the c of o might force you to install sprinklers all through the house.

Then you can have the profits of the building on your schedule E and then if you want to pay your management company, that shows up on your schedule C, it will also allow you to consult/contract out your work and still flow though your schedule C.

And, fun fact, if you throw your furnished rental income on Schedule C for a few years (while saving up a down payment using net profits from that business), it's mortgage qualifying income (granted it was a huge pain in the butt the first time I used it, and I know for a fact that not all lenders will go for it) in the event that you're so successful that you quit your day-job (2 of the 3 names I dropped above are people that do not have a traditional day-job).

Hi @Siana C.

The team at Old Capital handles financing for ~1 in 3 class B & C multifamily properties in DFW.They also host an excellent podcast.

To meet the 1% rule you'll need to be below $100k and in C neighborhoods. 

The debt against the properties are not in dispute.N******** was authorized to transfer the properties as a single manager without the signature of the co-manager, John C.

Originally posted by Scott Matthew C.

S put it....If my $1.4m were to drop back to $680k, most of your C tenants would have been out of a job and live at your apt for free, because the economy is just that bad!!!