That means you establish a Traditional LLC to carry out the operations of your investments, in order to separate the liability from your assets, including: paying property management, paying contractors, collecting rent, marketing, etc.

Take some time to save that extra 1.5% if needed - you'll be ready to buy before you know it!

They then took out the old tank, carried in the new one for me & paid their HVAC buddy to do the install to code.

People that got carried away buying properties that don’t cash flow adequately will have a hard time-especially SFR and duplexes.

I am looking to buy and flip houses with only cosmetic repairs needed in order to get extra cash to put towards my long term goal of passive income. 

Pat has been managing other peoples properties for many years and as far as I know carries a good reputation.

Even if I could get an extra $3000 per year, that is like a 20% IRR, is my math right on that?

I think it's important to have a business plan. i havent started my investing yet so take my opinion with a grain of salt but the more I think about it the more complicated it seems. really what im trying to do is just buy multi family properties at some kind of discount. add value by renovations or by purchasing in a down market. then fix it up to my companies standards and get them rented out one unit at a time. some of the things ive been thinking about include financing. how will i finance deals after the first 4 or so when the banks stop lending traditionally. also how much do I need in resurves to cover everything from fees to extra holding costs to a major cap expenditure. i want my business to have a plan so i will succeed no matter what. so i think its important to think about those types of concerns regardless of what type of investing you're doing and factor those in to your plan. im excited to save money for the first deal im only at 3k so far.

I have a 2 units house with an extra lot that could hold the same 2 units home.

For example, if you end up having excess losses that carry forward from year to year, and then you sell one of the properties - then the allocation of overhead expenses will matter.That said, if you want to simplify your bookkeeping - stick with #1, even distribution.