There are different tax codes / concepts when it applies to real estate investors vs those with a small businessSmall businessA) SEP IRA / Solo401KB) S-Corp or notReal EstateA) Real Estate Professional StatusB) 1031 exchangeThere are also some concepts that apply to bothSmall business / Real EstateA) Home Office DeductionB) 199A Qualified Business Income deduction

If it doesn't add income to your wallet after the expenses do not take the time and money to do it.

That way your 1099 write offs that probably killed your income would be irrelevant.I work with a lot of investors who rent and contiue to buy investment properties until they find what they want to buy again as a primary.

As the sole owner, I secured this asset with 0% down, a 5% interest rate, and a 5-year balloon.These strategic purchases form the foundation for a robust future, generating excellent passive income and equity.

You are building a business and you can bring in some SERIOUS revenue but in the eyes of your conventional lender and banker, you will still have a tough time purchasing assets based on income based on leases and contracts.

Tenant screening process - what credit score, how do you verify income?  

I put $50,000 down and now make $3,000/month from this property.Here's the breakdown:- 6 units in Indiana- $425K purchase price- $50K down- Off market & direct to owner purchaseI collected $2,885 in income the first month I bought it...Last month I collected $6,810 📈 And making ~$3,000/month in free cash flow.

Appreciation plays can start eating your regularly income if your not careful.#5: Cash-flow plays are incredibly hard to do in most cities nowadays.

They had set pricing for the weekdays and weekends, and based on the tax returns they sent me it appeared they were not reporting all their income.

I know crime is a big issue in OKC and I don't want to purchase a property that won't generate income.