The key things is that EVERYTHING expense and income wise in the LLC, down to paying the water bill, etc... must be done in EXACTLY the same proportion as what the LLC was originally set up as.

Also those pools come in boxes that machines(press) compacts.

But remember Ned's rule of Gurus.The value of a real estate investing program is inversely proportional to the price

National average is 6-8 for floors and 9-12 for walls, and in more expensive markets where the cost of living is high, this base rises in proportion.

If you're using incandescent lights(or even the swirly compact fluorescent lights,) you'll save a bunch of money and labor by switching to LED bulbs.

Given the effect of a large proportion of non-owner-occupant properties can have on an HOA and home values, I wouldn't be so quick to say that that is an unreasonable fine.

This sponsor reached into their pocket and paid back investors 100% principal but no interest.As far as I understand it, if the sponsor passes on losses to investors it would be in proportion to their specific interest in the project, i.e. you have 10% interest, you take 10% of the gain or losses. 

Proportionally, I will buy property for $50k that has an ARV of $100k after a $20k rehab  - at your cost.

My question is how the basis for each of the 4 properties is determined in the 1031 Exchange.To simplify the math,  the original basis is 500K and Sale is > $1M with a net of $1M after costs of sale then the capital gain would be 500K assuming there is no capital improvements.If each replacement property is 250K then the basis would be evenly divided with  500K/4 = 125K each.Selling a 250K for the same price250K - 125K basis = 125K capital gain  Fed Tax 125K * 15% Depr recapture 125K * 25KBut if the new properties have different prices: 100K 200K 300K 400K totaling 1M then wouldn't the basis' be proportionally calculated:10% * 500k orig basis = 50K basis20% * 500K = 100K basis30% * 500K = 150K basis40% * 500K = 200K basisLikewise the sale of a property would trigger additional depreciation recapture tax rate at 25% of the proportional amount10% * 200k = 20K 20% * 200K = 40K 30% * 200K = 60K 40% * 200K = 80K So, if I sold the 300K house for 300K then the Fed Tax @15% would be300K sale -  200K basis   = 100K capital gain  * 15% = 15K Fed Tax80K Deprec Recapture * 25% =  20KTotal Tax 15K + 20K = 35KGross Profit = 100K - 35K = 65K  before State TaxesThanks, R

I think this got a little out of proportion.