It really feels like they have a racket going on,getting an out of town inspection team to find lots of things wrongwith brand new perfectly working items, then saying that everythingneeds to be replaced.

I agree that LLC1 should recognize "Gross Income" though I would imagine its of basis and the COGS is basis to net to zero.

Either way, I think it's an amazing stepping stone.

Those details can make a big difference in whether staying as an LLC or changing to a C corp makes sense.

@Hyrum Shiner There’s way too many great deals to get caught up rushing to buy one.

VA loan is an amazing program for all the reasons you pointed out earlier. 

Quote from @Chaim Mal: @Michael Plaks it's not even worth getting a llc ?

I have a lot of equity from my first triplex and currently looking for another triplex.

They can only claim the §121 exclusion if the property is titled in their personal names or a disregarded single-member LLC, not an S-Corp or multi-member LLC.

We'd likely need to set it up for a policy for each LLC since its different ownership.