The seller paid $492k in property tax in 2016 and the pro forma showed a tax expense of $472k in 2018 and $484k in 2019.

These houses will be newer, around 2020 builds, so cap ex hopefully low. 

@Simandu Yakubov You asked many good, thought provoking questions.If a seller or broker advertises pro forma, then they are typically pricing the property based on that with the hope of finding a buyer who's willing to bite off on it. 

Then I will only have taxes and insurance to pay each year.

Quote from @Melissa Stanley: I’m hoping to purchase a few properties with a friend/business partner but after meeting with a lawyer am even more confused.

I'm in the UK which has a complex situation with US taxes, but if I'm reading this below website correctly you may have an easier time if you are treated as a non-resident Australian for tax purposes.

What are the tax ramifications of deducting interest on the two units we rent out on a first lien HELOC if we are parking paychecks and using that line of credit for personal expenses (groceries, gas, maintenance items, vacations, etc.)?

This means the $80K LLC profit is subject to both ordinary income tax and self-employment tax (15.3%), regardless of your high W-2 income or capital loss carryover.

Since you made the Traditional IRA contribution with after-tax dollars (ie non-deductible), there are no tax implications of converting that contribution to Roth. 

You want to pay as much as possible as his gain will be tax free while your gain will be taxed.