Once they transferred the home into an LLC taxed as an S-corp or partnership they broke 121 rules.Section 121 only applies when the individuals own and sell the home.

Setting up a new LLC for each flipping project is a common approach to limit liability, but as you mentioned, it can get tricky with all the bank accounts and bookkeeping.One option to simplify things is to set up a holding company (LLC or C-Corp) to own the individual LLCs for each project.

Renting rooms individually to six unrelated people would likely trigger the licensing requirement.

Whether you are a seasoned professional, just starting out in the industry, or simply curious about commercial real estate, this meetup is the perfect place to connect with like-minded individuals and build valuable connections.

Whether you are a seasoned professional, just starting out in the industry, or simply curious about commercial real estate, this meetup is the perfect place to connect with like-minded individuals and build valuable connections. 

Quote from @Lars Hartvig Kristiansen: I have recently bought my first two properties in MI and have been fortunate enough to have found a team that, while largely separate individuals they all know each other and work together.

You will need an individual who would consider it but odds are slim.

I’m in the early stages of my real estate journey and joined Bigger Pockets to connect with other investors, learn from people with more experience, and surround myself with individuals who are actively growing in this space.My background is in renovations, and I run Precise Home Renovations LLC, which has given me a strong understanding of construction, materials, budgeting, and project management.

I would recommend focusing on finding an attorney that specializes in partnership disputes and commercial litigation, though of course make sure that the attorney knows of the wrinkle and represents the SDIRA and not you individually. 

We're looking to revamp our investor tools for 2026 and are curious on which sites individual investors prefer to use to shop for properties?