You would be better off asking this question on the Tax forum where several tax accountants, including myself, answer tax questions: https://www.biggerpockets.com/forums/51-tax-legal-issues-con...Short answer is that you (your LLC, to be more specific) will need to issue your relatives form 1099-MISC, and they - rather than you - will owe taxes on their portion of the profit.

I am a newer investor and had been looking to purchase a long term buy and hold cash flowing property locally and I ran into an absolute home run deal. A property owner/manager is liquidating due to divorce and sellin...

Yes, some investors layer private money with hard money or short-term loans to speed up closings, but it’s important to run the numbers carefully to ensure the combined interest and fees don’t eat your profits.

And then be able to 1031 exchange the other lots and indefinitely defer that tax.Have your cake and eat it too!

But as an experienced investor, I’m sure you know real estate is very market specific.

Tenants do stupid things and you don't want eat off during winter and burst pipes causing thousands of dollars in damages you have to try and chase tenants to pay.

.- I want to keep propstream for specifically pulling lists (i think?)

I want to set things up correctly from both a liability protection and tax-efficiency standpoint but I’m not sure what the smartest approach is.I want to make sure I’m protected personally, while not overcomplicating things or eating up profits with unnecessary entity costs.If anyone has been through a similar situation—owning properties in more than one state—and can share what structure worked well (or what to avoid), I’d really appreciate the insights.Thanks in advance!

Use your home field advantage, it's worth at least 20% - even going to Milwaukee (which is a slightly better market) makes you an OOS investor and that more than eats up the small benefit.

Got burnt years ago, in a disclaim not disclose deal, so not much I could do except get my home inspection fee back and eat an additional 10k in renovation which is probably 2xs that in todays dollars.