Here are the key points:Reasons to participate in the capital call:It may allow the property time to stabilize and potentially sell within 24 months at a better price, avoiding a significant loss of LP-invested equity if forced to sell now in an inopportune market1.The additional capital can cover costs like rate caps and allow renovations to resume, which could help increase revenue and better position the property1.The operating agreement likely outlines the terms of the capital call that LPs agreed to2.Reasons to be cautious about participating:Capital calls can indicate the investment is not as sound as originally thought and is potentially at risk2.There is uncertainty around whether the additional capital will be enough to turn things around, especially if interest rates remain high and the market stays challenging for longer than expected4.LPs need to carefully consider if they would invest in the deal now based on the current facts, rather than just trying to avoid a loss on their initial investment4.Other important points:LPs should review the operating agreement, seek professional advice from their attorney, and ask the general partners detailed questions about the capital call2.If an LP is unable to contribute to a mandatory capital call, they may be considered in default and only entitled to the return of their remaining capital account balance, with no further distributions5.In summary, whether an LP should participate in a capital call depends on their individual assessment of the risks versus potential upside after carefully reviewing the deal specifics and getting advice from professionals.

Your remarks indicate a position - like maybe you run it.

This revelation prompted me to reconsider the purchase, as it indicated financial instability and substantial building repair needs.

My market analysis indicated we could rent it for $1,000-1,100 over the mortgage. 

@Jonathan Miranda - it would be helpful to know where you are buying/are located (your profile does not indicate...), so that someone more familiar with your area can comment.  

.🚄 Construction activities on I-15 near Las Vegas indicate progress on the high-speed train project between southern California and Las Vegas, with nighttime work focusing on geophysical and soil testing.I hope you’ve enjoy this month’s newsletter.

There doesn't seem to be a lot of MTRs (rooms and entire units) in the area just based on initial searches on Airbnb and Redfin, but I understand this isn't the only indicator of demand.

David Green at BPCon 2023 indicated his accountability group had annual cost of $50k with min net worth requirement of $20m.  

It needs to be a short A cost segregation study breaks down the property into smaller components based on their useful lifespan, indicating what can be depreciated on an alternate schedule.

Also, a better finish to the rehab would not necessarily indicate a higher market rent.