It depends on your tax situation, and here's a detailed explanation:  https://www.biggerpockets.com/forums/51-tax-legal-issues-con... 

Wanted to check if that is true and if it is just lender specific or are there any legal laws around it.Thanks

I want to run by the biggerpockets world a potential new model I’m working on and I want to be clear this is not intended for self-promotional purposes or necessarily even something I will enact (i’m not even totally clear on the legally of this) but something I want feedback on and also to spark a discussion of alternative agent models.

You can potentially find undervalued properties, rehab them efficiently, and achieve good rental income.Decent rents: $1000-$1600 rents provide a strong foundation for positive cash flow after factoring in rehab costs and ongoing expenses.Cons to consider:Market competition: Investigate how many other investors are using BRRRR in Wichita.

The properly sits on a large 28,480 square-foot lot zoned for office, creating the potential for re-development as a medical office expansion.

But those are nice cabins with more than one special factor: incredible views, high-end design, amenities.But I run numbers on potential short term rentals all day, and 4 out of 5 are less than 5% CoC.

Regardless of the market you choose, please make sure you have reliable boots on the ground (agent, contractor, handyman, bird dog) to check our potential properties and be able to respond in the event of an emergency. 

The current market conditions have made properties quite expensive, potentially leading to a scenario where I'd have to cover monthly expenses out of pocket.

., interest rate, down payment, loan term).Calculate Gross Rental Income: Determine the total potential rental income the property could generate annually.

I'm just lacking the knowledge as far as starting the business off correctly as far as LLC's and being legally set up beforehand.