Partnerships in flips

[Jose Contreras]

Hello everyone

I would love to get an opinion on our situation from everyone.

My wife and I buy and hold long term properties. So far rents are great and we would like to purchase more properties, however we are limited in how much we can save at any given time, which is why we are considering a partnership with another couple by forming an LLC, where we buy and flip homes to generate additional income to buy our own properties.

Our limitation is that we are high income earners already from our W2 income and are wondering how income from a flipping business would affect our tax situation. I spoke to our accountant and he said that the income from flipping would be taxed at our tax bracket and may additionally need to pay social security tax, etc.

The alternative is that we buy and hold larger properties together, however this complicates the situation in that we would need to be in a very long term partnership, which we are not ready for at the moment.

Appreciate any thoughts or comments on the matter.

Thanks