Quote from @Yemisi Dinkins: As a property owner, I would never sign a Master Lease because I would give up control of the property so someone else could profit from it.

At first, you won't be able to offset your W2 income with losses, but it is nice when you sell a property at a profit and all the capital gains are wiped out by losses from other properties.A huge amount of tax savings get unlocked if one of you leaves your W2 job to focus on real estate and you get Real Estate Professional Status (REPS). 

I would add to get and keep your finances very organized.

It's all about balancing immediate profit versus long-term wealth-building potential.  

That's fine, i mean the profit and losses I've seen are pretty legit breakdowns.

It's OK but super skinny and a lot of work doing a rehab loan for $23k profit if everything goes perfect.

But keep on thinking and evaluating, as there are niches out there where someone can develop a profitable business over time.Good luck  

And we add the cost of the W/D into the rent, so any units that make it a little more than 1.5 years are profit.

Generally, Distributions are paid from profits that have already been taxed at the personal-level since IRS Schedule K-1 flows through to personal return.

The $12,000 profit from Rentals 1 and 2 would be offset by the $15,000 loss from Rental 3.Hence, the $3,000 loss cannot be deducted against your other income because your AGI exceeds $150,000.