There is high chance you that your plan will not go as planned and you will receive a bill from the IRS for $200K.I am not an accountant and can't provide you with a tax advise, but highly recommend you talk with experienced CPA before you consider this strategy any further.

I'm not great at record keeping, but having a hardcore CPA helps.

*This structure was first recommended in my hearing by Mark Kohler, a CPA and attorney, at a Nouveau Riche (free/sales) presentation a number of years ago.

I've found a couple of good RE agents to help, a CPA, an attorney filing LLC paperwork friday, and still looking for honest contractors.

I'll talk to my CPA about it.

Maybe an Installment Sale may be choice, see a CPA for tax ramifications.Dodd Frank for Seller Financing requires a RMLO (Reg Mortg Loan Originator), a good one in California ishttps://www.linkedin.com/profile/view?

Out of all 50 states whenever I bring up PA to my CPA he cringes.

The "50% rule" says that 50% of gross rents will go to expenses (water, trash, taxes, insurance, property management, maintenance, CPA, attorney, evictions, tenant damage, lawn mowing, snow removal, etc.), vacancy, and capital (roofs, boilers, furnances, etc.)

Since every state has different Laws in regards to LLC.I highly recommend talking to a real estate lawyer and CPA.

Clint,I am no CPA so you may want to double check with an accountant but I believe that as long as the property is put into service as a rental when the work is done, you should be able to write it off.