However, Solo 401k is designed for owner-only businesses, therefore if your business will have full time employees (part time under 1,000 hours per year is OK) - this option will not work.

This is probably too honest but as an employer I get frustrated when I feel like my employees attention is being pulled in different directions and I view them differently in terms of how I expect them to contribute to my company now and in the future.  

So here goes:Net Operating Income (NOI) = Income - ExpensesCash Flow = NOI - Debt Service (P&I)Income = RentExpenses = Taxes, Insurance, Maintenance, Utilities (if any), Management, Vacancy, Cap Ex, Landscaping/Snow RemovalMaintenance = 5% of gross rentsManagement = 10%Vacancy = Investors have different theories on this, but if you use 8-10% you should be coveredCap Ex = 5% (if the property is old, you may want to increase this)The other expenses you are going to have to do your research to come up with.

I suggest putting birddogs in your LLC as a restricted member with an interest in management activities and pay them, however, as a member rather than as a contract employee or independent contractor.

One rule of thumb you can use is 10% of the gross spread.

While working as a residential rental agent from May-August I grossed over $30,000.  

And I was assuming you'd be self managing so no PM fee.There's 850/mo in expenses there so your gross profit is roughly 650/month.At that price, you should make money providing your screening is good and your rehab includes anything that has a short lifespan (btw I replace water heaters on every house I get - no matter how good they look.

But you can be nice to the tax department employees and they can print it off for you.

Now I want to hire him as an employee.

.- VA - no equity in the primary residence is required to use rental income offset and depending on who the investor is on the note you should not require 2 year land lord experience as well (documented by tax returns or third party verification).The key distinct advantage of VA rental income offset is that its not discounted which means you can use 100% of the monthly gross income to offset your current PITIA (monthly principal/interest/tax/insurance/assessments of your current residence).