Eventually, it will be worth it to ditch it and do more of what you love, but for now your plan is perfect.

If you eventually sell the property the carry forward losses would still be valuable.

That is why the old 20-property limitation system failed and was eventually abolished because it was not accomplishing anything. 

I guess I felt we had to have some deep conversations where I tried to explain how I believed it was neccesary for our eventual retirement. 

He would like to see a 7% return on his investment, interest paid monthly, and his money back when we eventually sell or cash out refi (~10 years out).Our current intentions are to live in the new building, rent out our primary, and short term rent the 3 units adjacent to our unit in the new building.

@Anita Zuniga if your end goal is to eventually move to San Diego then I think this would be a smart plan. 

I inquired and eventually joined the  intimate group. 

For landlords, lease options can attract tenants who are committed to the property and may take better care of it.Commercial Property Considerations: When considering a lease option for a commercial property in Texas, ensure that:The terms of both the lease and the option agreement are clearly defined and legally binding.Both parties understand their rights and obligations, including maintenance responsibilities, payment terms, and conditions for exercising the option.Consult with a real estate attorney to draft or review the lease option agreement to protect your interests.Here are some things that may help you form a pros and cons list going forward:Advantages:Potential for higher rental income due to the option premium paid by the tenant.Attracts long-term tenants who may eventually purchase the property.Allows flexibility for both parties in uncertain market conditions.Considerations:Ensure the option fee and terms are fair and reflect the property's market value.Understand the financial implications and tax considerations associated with lease options.Be clear about the tenant's ability to exercise the option, including financing requirements if they decide to purchase.Lease options can be a viable strategy for commercial properties in Texas, offering flexibility and potential benefits for both landlords and tenants.

Eventually, I may move my LLC over. 

Then refi out I’m looking to live in it as my primary residence and eventually pull equity for down payment on a rental property