You can tax a LLC as a C Corp, but you miss out on many advantages.If you are running a service company to manage flips, a C Corp might be best since you would want to be able to expense everything, but if you use a LLC owned by another entity, you might want it to be a flow through entity.Personally, I don't know of a case for a S corp other than self employed professionals. 

This allows them to classify part of their income as salary, which is subject to the self employment tax (15.3%), and the rest as distributions, which are not subject to the SE tax. 

So you end up paying the same amount collectively in tax as you would if the rental were located in California ($1,250), just not all of it is paid to the state of California. 

I already pay for their kids schooling (property taxes), section 8, health care and food stamps with the 100K a year I pay in federal income tax a year.Apparently some people are bad at economics.

However, the rental income usually is considered your personal income and is calculated on your income tax as an individual.

I will be grouped into the highest tax bracket (I am assuming I will pay short-term capital gains tax as well on these because I will not be holding onto any flips for over a year).

Disclaimer: this last paragraph may become outdated once/if the current administration changes the rules for SocSec tax, as they have proposed.

Also, you can take out loans against the properties to buy more, and not incur a capital gains tax (as the IRS code is right now). 

i have single-member LLC rental generating income on the side operating as STR. From the single-member LLC, i pay myself 100k last year to max out on the solo 401k contribution, while still having a W-2 as an enginee...

Any thoughts on whether you follow the logic about this being a regressive tax?