Any capital improvements on a not owned yet property would involve a complex 1031 you’d want someone like @Dave Foster involved in. 

So it sounds like it will be "tax-free" initially, but when the complex is sold after about five years I will be taxed on those monthly distributions.

Backstory - we have an apartment complex that had a $339k loss on paper last year (I'm a 40% partner).

Zach called me and told me they were changing my loan because they were going to consider my loan a “new construction” as oppose to an existing structure rehab or even complex rehab (considerations I’ve experience with other lenders).

I read an article I thought articulated this very well, we are seeing the collapse of a very complex system and this the fruit.  

Anyone can buy a stable senior income fund like FLBL with the click of a mouse and no liquidity or complexity issues. 

The rules are more complex than we can fully explain in an online forum.

And my property taxes and probably repair expenses would skyrocket owning multiple OOS properties or an apartment complex in an unknown market 2000 miles away. 

I’m wondering if the influx of newer apartment complexes near campus has shifted the supply and demand balance.

I'd be surprised if the complex doesn't have individually metered units so you may be able to eliminate the utility expenses unless those are for common areas like walk ways, parking lot or laundry.