And you now have to file three tax returns:- partnership tax return- your individual tax return reporting 1/2 of the partnership losses- your partner's individual tax return reporting their 1/2 of the partnership lossesAnd while partnership return can be DIY-ed, it probably should not be.

Hey @Sidney Duquette so I am not a fan of buying properties that can't perform with the hopes that it will build equity to offset the losses.

If you do have gains, you may be able to offset other properties losses to reduce the tax burden.

North Carolina, Florida and Tennessee round out the five leading growth states.And, for the fifth year in a row, California reflected the largest net loss of one-way movers, according to the data.

I think behind tenant screenings and leases there is a quality of a landlord that's also as a person that is the respect for a good person and the intelligence of making fair affairs.
For me for ten years in the past...

Let me know how it turns out; I’m always looking for investors with vision like yours!”

Sharing leases, profit and loss sure but no inspection. 

Here's a breakdown of the situation:Current Occupancy: 80% (16/20 units occupied).Current Gross Rent Roll: $14,265/month.Market Rent Potential: $17,665/month (100% occupancy).Renovation Needs: 15 units require full renovation ($10K/unit), 4 units are 75% renovated ($2.5K/unit), totaling $160K in renovation costs.Vacancy Loss: $41,820/year in lost income due to current vacancies.Cap Rate AnalysisThe seller lists the cap rate as 9.59%, but this is based on the projected NOI of $119,858 (assuming full occupancy and market rents).

Then you can determine if you made a profit, loss or broke even.Determining your sales price can only be determined by the market. 

If they didn’t have replacement cost, what should they do to capture value and get a loss writeoff?