Losses from investing in partnerships are usually passive but not always.

@Justin ShermanIf the property is in a high-demand area with rising rents and appreciation potential, it could still be a solid long-term investment despite short-term negative cash flow.

Before you invest in cost segregation, you need to figure out whether it will help you.

A good PM partner that knows the area well will ultimately help set you and your investment up for success.

Quote from @Donnie Jones: The harsh truth is that wholesaling is a job, not a means of investing.

Of course we wish you the very best of success with this investment.

Partner B will get $220,000 + the single wide, while Partner A's heirs will get the apartment building and the double wide.They intend to sell one property ( the double wide mobile home ) and use the proceeds to either pay down the loan or reinvest in another rental property (possibly in another market).To defer capital gains tax, they plan to use a 1031 exchange for reinvestment.Goals & Challenges:Tax Efficiency – Structure the transfers and payments to minimize tax liabilities for Partner A’s Spouse and the Children.Guaranteed Income for Partner A’s Spouse – Ensure a fixed monthly payment of $1,100/month while transferring ownership to the Children.Long-Term Investment for the Children – Build a solid rental portfolio to support future financial growth.Operating the LLC Under New Ownership – Ensure a smooth transition, including removing Partner A’s Spouse and Partner B from the LLC structure.Proposed Plan & Questions for Advice:Instead of outright gifting the 50% interest, the LLC will be restructured so that Partner A’s Spouse retains a Preferred Equity Stake that provides them $1,100/month in priority payments but gradually transfers ownership to the Children.Payments will only be made when rental income is sufficient (i.e., when rent increases to $850/unit).Partner A’s Spouse is willing to forgo payments in bad financial times but wants assurance that they won’t face any tax consequences on unpaid amounts.If Partner A’s Spouse passes away before full ownership transfer, the Children inherit the shares at a stepped-up basis (avoiding capital gains tax).Questions:How should the LLC Operating Agreement be structured to allow withholding payments when necessary without triggering tax or legal issues?

Back in 1986, similar tax cuts spurred a 12–15% boost in commercial real estate investments, and the 2017 overhaul led to a near 10% surge in capital expenditures in key markets.

Quote from @Will Cruz: Does anyone know of a Bank that is willing to do a HELOC on an investment property?

Quote from @Juan Castillo: Most people "dream" of investing in real estate.