So we create a partnership agreement and a new LLC and he funds the LLC account with 50k.

Once you're ready, create a goal (e.g., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it.

This can create deprecation needed to offset these gains, and we don't need to qualify for real estate professional to take advantage of it in this case here. 

This area has a unique mix of affordability, beauty, and rental potential that makes it a standout choice for real estate investment.

And remember, authentic content that reflects your unique perspective and experience will always be more impactful than recycled material.

So, by transferring income from a rental schedule E to a business schedule C you're creating a significant extra tax.

I believe it's a great and thriving community with unique aspects that make it stand out from other markets in Texas. 

Year 0: ($2,000 - $1,700) x (1 + 2%)^0 / (1 + 5%)^0 ≈ $300 in today’s buying power.Year 5: ($2,000 - $1,700) x (1 + 2%)^5 / (1 + 5%)^5 ≈ $260 in today’s buying power.Year 10: ($2,000 - $1,700) x (1 + 2%)^10 / (1 + 5%)^10 ≈ $225 in today’s buying power.Year 15: ($2,000 - $1,700) x (1 + 2%)^15 / (1 + 5%)^15 ≈ $194 in today’s buying power.So, if you purchase property in a city where rent increases at a slower pace than inflation, the amount of goods and services you can buy will decrease over time due to inflation.Here is what I recommend:Purchase in a city that possesses the following characteristics.Significant and sustained population growth.Rapid and sustained appreciationBalance negative cash flow, interest rate buydown, and increased down payment to create an acceptable cash flow situation today.Refinance when rates fall to increase cash flow.

I tried to create rapport with the owner over the phone but waited to present my real agenda only in person.   

Once you're ready, create a goal (e.g., "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it.