Now, if you want strictly passive returns, this is probably the best vehicle provided you buy quality certs that you are reasonably certain will be redeemed or sell at the tax deed auction. 

If any member of an LLC is another company or corporation (there's a difference), then S-corp is not an option.Now, allow me to reframe your position and tell me if this is correct: one entity to hold property and another entity to run business operations.If that sounds like what you were thinking, that is a common strategy. 

Portfolio lenders typically follow the same (75%-80%) rule and consider the additional income from your properties and perhaps relax on the debt to income ratio and as long as the deal makes sense and generates positive cash flow.  

And I agree and one of my biggest concerns is being in a bad position with the HOA by going against their wishes. 

At the same time, you can be improving your personal finance position to have a solid foundation for investing and taking calculated risks. 

The pros are that I'm very familiar with finding quality deals.  

im thinking of buying a house that uses gas.sidenote: im the type of guy who can live in a cold house. i just need a lil hat and some a warm joggers. ill even go as far as wearing long johns. f that heat. a better alternative is to buy yourself a crypto miner. them things make so much heat. theyre just loud. too loud.Gas is critical for 2 things these days: larger tankless water heaters and higher quality stoves.

Dave Foster is right - value is definitely in the cash flow and leases with high quality tenants.Nothing wrong with going direct investment route either.

Just make sure you are comfortable that even when the economy declines you are still in a comfortable position should you have to take that property back.Lauren Prichard, CEOAborn Powers/Aborn Homes

While I personally rely on this position, please note that I am not an attorney, the foregoing is my opinion, and the laws applicable in your State should be reviewed.I welcome replies from those with a different understanding of the law, or from states with notably different law.