The reason for this is that a large portion of the value of the property is allocated to land improvements, rather than a building.  100% of that portion of the property's value allocated to land improvements can be taken as a passive loss in the year the property was acquired. 

Defining your criteria may include things like do you want to manage a small local portfolio yourself, or plan to allocate 10% and hire a property management company?

Hi @Walt Giroir, The sale can be allocated between the primary residence and the investment or business use portions. 

I would add that you want to how familiar they are with closing documents and allocations. 

Your post got cut off, but it appears that in this case the Board and/or management company should be able to fairly easily create a spreadsheet which would allocate the total budgeted Assessments needed amount the 24 units based on the criteria set in the Governing Docs.If you haven't done so already, let me know and I can help set that up for you (I've been an accountant for an HOA management firm for almost 10 years).

Based on the figures you inputted into the calculator, you’ll actually be leaving roughly $47,500 in the deal.It also seems you didn’t allocate a line item for CapEx.

While I understand that a HOA is technically not supposed to earn income, those who manage the collection of the fees and how they are allocated must earn income, otherwise why would they do it. 

If the funds are split between more than one deal track wht amount goes to each, as you'll deduct a proportionate allocation of interest on each as well.

., allocating the land value based upon local property tax valuation ratios might be acceptable).

As seen in the report, I am charging utility outside of water and garbage to the tenants and about a 7% average for vacancy, maintenance and cap X with a 25 allocation each month as extra.