@Tyler Speelman Your strategy to assist your sibling with a down payment while minimizing tax liability is creative but comes with complexities.

So it sounds like it will be "tax-free" initially, but when the complex is sold after about five years I will be taxed on those monthly distributions.

Final comment, it seems complex.  

Networking with other investors can provide valuable insights and support, helping you to navigate the often complex landscape of real estate investment.Remember to factor in potential risks and have a contingency plan in place.

I bought a 16 unit apartment complex that was a expense nightmare, with low rents, that I eventually gave up trying to make profitable. 

While both involve finding and properly securing a site and bringing it to full entitlement, the ground-up process includes the land piece but gets way more involved and complex to execute.The full "Monty" for ground-up development needs to include financial literacy, an explanation of metrics, and how they work.

This experience will help you prepare for more complex real estate deals in the future.

They are 100% correct.The downside sometimes to forums is people have a superman complex and get the impression real estate is easy as they think everyone is doing it and just jump in without the knowledge or expertise.

Out-of-state projects add another layer of complexity.

It just adds complexities and costs without any benefits.