The main issue is DSCR wont work out so any lender is going to require massive amount at closing to offset or reduce loan amount. 

Thanks again to the respective contributors, and keep 'em coming:Financing / leverage allows for faster growth.Financing allows for a much larger portfolio (for a given amount of cash), with lower positive cash flow per property but more positive cash flow overall.Having some percentage (say 50%) of properties free and clear (100% equity) can act as a backstop to protect against downturns and other bad situations.Rates are low right now so now is a good time to borrow as much as possible.Starting with cash and then quickly moving to borrowing can reduce the complexities when first starting out and building a team.Using financing leaves more cash on hand to deal with unexpected expenses.A large multi-unit benefits from economies of scale, which supports the argument to leverage existing cash to finance larger cash flow (ROI) as a percentage.One "con" for large multi-units is that the market for multi unit properties should I need to sell is tougher because of limited buyers.Gaining two or more years of proven rental revenue will be considered as good as employment income by smart lenders.This is a valuable list that I think you could almost make a book out of, with each bullet being the topic of a chapter.

But what you talk about is some good tax planning to reduce or defer the taxable income to future year.

My experience in SoCal counties has been that they universally hold off providing Tax Sale Deeds until the one year runs, thereby reducing their exposure to lawsuits and the cost of defending (IMHO).David Krulak - glad to see your post(s).

In addition, if a vacancy is not filled within "x" days, their monthly fee is reduced by "x%" until the vacancy is filled and is not reinstated until the first day, of the following month.

Sales price of $125k.Y1: $40k downpayment is taxed as 1231 recaptureY2: Interest IncomeY3: Interest IncomeY4: Interest IncomeY5: Balloon Payment of $85k = $10k section 1231 recap, $25k basis recovery ($75k orig basis reduced $50k by Accum.

One way to reduce self employment tax on flips is to use an S-corp or an LLC taxed as an s-corp.

Your deduction amounts to a % of the interest paid and your income should always be ahead of that so all you really do is reduce you actual interest expense, but if you reinvest the money it will add to your income derived from that investment on an after tax basis foryour cost of money.

You have to ask yourself if it's worth it,financially.Probate is not cheap and your share of the proceeds will be sharply reduced with all the attorney and court fees.Plus,the original lawyer will want money for defending the estate from the lawsuit (whatever the reason for the suit).It could take a year or two to fight the sister and in the end,the lawyers will eat up the money from the estate over time.Unless the house is worth at least $200,000 or more as is without major repairs and upgrades needed,I would seriously question whether fighting the druggie Aunt is worth 2 years of litigation and court appearances.It is just my opinion as someone who has suffered through probate,don't take it for the gospel.

All properties are owned in my name and husbands name but have an umbrella policy to reduce risk-no LLC.........thoughts?