Unless your Heloc rate is well over 9%, youre better off just applying your excess cashflow toward paying down the Heloc balance, which will immediately reduce the interest that accrues the following month.

It would just take longer without guidance.My experience is that someone has to actually apply what they are taught “consistently for a long period of time” in order to become successful, The mentor is there to help them along that path.

Are there general rules that apply about this, or is this a lawyer question?

Your CPA should apply these passive losses now that the activity has been fully disposed of, ensuring the gain is correctly offset.This post does not create a CPA-Client relationship.

@William SilvaRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

@Saurabh Kukreja we don't recommend investing via zip codes - too broad of an area.We've mapped out all of Metro Detroit and categorized Cities & Neighborhoods by Class A, B, C, & D.We take assisting investors very seriously, just read below:Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

Real estate investments can be great so hopefully you can apply what you've learned here so that if you decide to try it again you'll get a better outcome.I think what may have went wrong here is you invested in real estate at the wrong time, and with the wrong operator (syndicator), and perhaps didn't have the expertise to sort either of those two factors out.  

A good mentor would take the time to make sure you understood what he was talking about, how to apply it and answer your questions.  

The income necessary has a wide range depending on loan terms and house hacking where rent can be applied to income requirements.   

I looked at it for 5 minutes, here are my notes.In general, the stepped up basis portion upon a partners death would only apply to the partners ownership portion.