Your situation is an easy one.   

Free Advice: Create two LLC's one for flipping and one for your passive as this will prevent domino effect if one aspect fails and make sure you setup proper firewalls to prevent commingling funds. 

This is my first post on BP so please go easy on me!

just so you know ... buy and hold investments are a long term strategy that does realy provide any cashflow until about 10 years, if done properly. 

The PM has limited funds for operations, and if sued, little to lose - you can close it and open another PM LLC.Yes, in a lawsuit, you, the Holding entity and the PM LLC and all might be named, but if properly structured and maintained, a lawyer could easily take you and the Holding LLC out of the lawsuit on the premise that you were not involved.

My buildium software makes it easy for me to charge water bills so I don't need a billing company.I did not want to use a submetering company with provided equipment that charges a each tenant a surcharge depending on the level of service that they provide.

Getting clients (and keeping them) is not easy.

Get them put in writing.Corporate rental is not as easy as you think.

However, again managing my father's 4plex has been.... very, very easy compared to what I hear on these forums.

One would also argue the term is too vague to be properly interpreted in a legal sense.