Passive investing vs IRO Tax difference?

[Tim Rainey]

Can someone break it down for me?

Lets say passive investing $200k in Multifamily Syndication vs $200k down(the rest financed) on small MF IRO property with 12 units at about $800 per door rent. I know that there are lots of variables, but lets say the cap rates between the 2 are similar.

So between the 2 investments of the same amount, does the IRO have a significant tax advantage over being a passive partner?

One potential advantage that I am trying to decide to quantify for the passive is refinancing out and redeploying that cash later.