.- Property value appreciation doesn’t get passed on to shareholders.- Most importantly, its value goes up and down with the stock market, and it can in fact go to zero if it’s poorly managedThe closest thing to passive REI is joining a syndication.

I am awaiting the first blockbuster shareholder lawsuit against the management of these companies over financial malfeasance. 

Local banks have a return they need to meet for their internal financials/shareholders/board.

Beginning with its second taxable year, a REIT must meet two ownership tests: it must have at least 100 shareholders (the 100 Shareholder Test) and five or fewer individuals cannot own more than 50% of the value of the REIT's stock during the last half of its taxable year (the 5/50 Test).Also the setup and tax reporting every year would easily cost you five figures and possibly six figures.I think you are looking more about doing a syndication like a 506c or 506b

Annual Berkshire Hathaway Share Holders Meeting2.

The primary purpose of corporations is to enhance shareholder value.  

We have a new construction SFR project under our C corporation, where my husband and I are the only shareholders.

If further down your road you may be rolling your properties into a corporation, you will want to take measures to mitigate any taxation and the time you roll-over (Note:  Depending on your situation, it is possible to roll a property you own alone into a corporation where you are the sole (or primary ... 95%+) owner without incurring a taxable event).If you will be rolling a property into a company with partners (other shareholders) ... where there will likely be a taxable event ... then you want to plan in advance ... and may or may not want to claim CCA as there will be recovery when the property is deemed to have been sold.There are several differences between holding property in your name versus in a corporation.  

A 30 year fixed Rate Mortgage paid by the Tenants disappears in 30 years.Let's say you started a Company that's traded on the Stock Market and that Company bought 1 Property for $1.2 Million, took out a 30 year fixed rate $1 Million Mortgage on the property, broke even on the Cash flow.The Company issued 200k Shares.To Calculate the Current Share price it should be trading at parity, you take the Shareholder's Equity and divide it by the outstanding shares.The Shareholder's Equity is $1.2 Million minus the debt of $1 Million = $200k.

And the agreement should either specify a back up administrator or allow shareholders to vote on a new one.