For example, you could create a weighted structure where a percentage of profits is based on cash contributions, and another portion compensates for rehab or management efforts.Rent Payments and Tax-Free Profits:If you structure it as an owner-occupied property, the rent you pay could be shared proportionally, but tax-free gains on resale may only apply to your share, as you’d be the owner-occupant.

The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

How does this look from a tax perspective.

A 1031 exchange would use all of the tax in the purchase of your next property.

The units are all currently occupied right now, so we won't have to worry about the buyer's market right now haha.With the cash flow I will receive, it will be enough to take care of property taxes, insurance, and enough to save up for any emergiences with the unit that I will need to take care of, so no need to worry, I got you :)!

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

Consider the "2 of the last 5 year rule" to avoid capital gains. 

An uncontested foreclosure is often the best way to resolve issues with subordinate lien holders though I've also contacted some and explained they were about to be named in a foreclosure and suggested that could be avoided if they just released the property from their judgment/lien.

And to avoid pitfalls. 

If you paid under $230k, you’d save $30k in federal capital gains taxes and maybe another $15k or more in state income taxes.