That means the income is active, so:• You will probably need an LLC taxed as an S Corp once you start making money, so you are not paying extra self-employment tax.• Caregiver wages, food, supplies, licensing, insurance, and overhead are all fully deductible.• Since you plan to live in the home, you will need a clear split between personal use and business use.

You could see if she can obtain a letter, paystub statement, etc from her employer showing that her salary is not being paid currently.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

Hey Matt, what I would suggest is it really depends on what marketing strategies you would like to employ.

That structure helps reduce self-employment taxes on flips.For rentals and future multifamily, an LLC does make sense for liability protection, cleaner bookkeeping, and long-term tax planning, but you can set that up when you get closer to holding properties rather than flipping.As for timing, there’s no tax disadvantage to buying now versus January.

What’s helped is being honest about that on the front end and focusing on properties near steady employment rather than purely student-heavy areas.

I’ve been seeing more investors use asset utilization loans lately, qualifying based on their liquid assets or portfolio instead of income or tax returns.For experienced investors or self-employed borrowers, this seems like a powerful way to unlock equity and keep scaling even when write-offs limit income on paper.Has anyone here closed a deal using this type of financing?

Almost always on commercial properties and 941 taxes or persistent offenders not paying employment taxes.

.- It turned out to be an okay purchase over time.Recently paid full asking price for another duplex, but got seller financing with a low interest rate, so the property cashflows.We'd need more info on YOUR purchase to give you any feedback.

That means higher tax rates and possibly self-employment tax.