If the funds come into your direct possession at any point, you'll likely lose the tax deferment.

The more of these assets the sponsor possesses the greater the chance and easier time he’ll have 1.

Also, one of the homes can be raised from $1,850 to $2,300 when new owner takes possession. 3 Family House6750003 3 Bedroom ApartmentsApartment 12,205.00$Apartment 2 HUD2,300.00$Apartment 3 HUD1,850.00$Total Rent Expected6,355.00$76,260.00$ExpensesSchool Tax 23-243,460.68$Town and County 20242,222.30$Insurance3,035.51$Lawn & Plow2,400.00$Repairs and Maintenance Furnaces1,231.20$Total known expenses12,349.69$NOI63,910.31$Cap Rate9.47%

Possession: The buyer typically takes possession of the property immediately upon signing the contract.

Is the beneficiary of the trust in possession of evidence?

So you just never know what you will find once you get possession. 

Once we got possession of the house we literally had to wear respirators to be able to enter the house the cat urine smell was so strong.  

There's a few other things to think about too: 1 - Possible owner financing if he wants to still get a stream of income into retirement at an attractive rate compared to the rest of the market (win/win scenario, you don't need to come up with as much cash, and he makes a little $ on the %) 2 - Consider a post possession if he needs some time to move out but needs the cash up front for whatever reason 3 - Leave all the furniture/junk in the property and you'll handle clean up etc. 

Greg Scott is correct, you will have to pay capital gains tax on any monies you take possession of. 

Success in real estate requires at least two of the following, thou possessing all three is better; capital, knowledge and experience.