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Terrific advice DDDDave. The only thing I take exception to is that I wouldn't run the business through an S corp, but would use a single-member LLC instead. Single-member LLCs are cheaper to setup, easier to operate, and you are treated for federal income tax purposes as a sole proprietorship - which makes it cheaper and easier to prepare tax returns. The other reason I say LLC is that there are adverse tax consequences if you ever needed to convey the properties back out of the S corp to yourself. Once you have a track record and are consistently making good $, you might then want to incorporate an S corp to handle the rehab / property management side of the business and hold title to the properties in an LLC. This helps to segregate your high-risk activities from your valuable real property.
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