I like tax lien certificates in multiple states as a hedge against downside risk of development and flips.

Question about a possible alternative to the LLC with scorp tax election.LLC with Scorp tax@Brandon Hall, @Steven Hamilton II:)I see 3 downsides to running with the LLC with scorp election.1 Separate tax return for each LLC and yourself.2 Unemployment tax on your income- although limited to $8,5003 Ambiguity on what a reasonable salary is for a house flipper.For number 3, allow me to expand on my confusion. 

The only downside is that someone (you) would have to check them monthly and on a regular basis to calculate usage and then reconcile that against the master meter bill, then subsequently print a statement with rent + water for the tenant to settle up each month.Good luck!

The downside of that is that we lose $30k that we could be putting into a down payment on the new house.

The downside of incasing the furnace is that it will make it difficult to change the filter ... but, I would hazard to guess it is not being changed regularly now given the unit is in the attic.

The down side to owning single family houses is when you get to many, the economics point back to multifamily housing.  

I'm in a good sized midwestern city (2 million+ metro population), that's not as cyclical as the coastal cities.On the downside, I have only a relatively tiny bit of relevant experience.

It took until approximately month 4 (and even later than that) for the leads to start pouring in at a steady rate.The only real downside is - the leads are from all over the country (in markets I don't necessarily know very well).

The downside to that is giving up all the steady interest income.

The down side to this of course would be that we would need to find a good PM company, and the distance would make it difficult/ risky to manage.