Will landlords who are barely profitable as it is sell?

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

Changes some of my answer below, but here would be most of the types of transactions you would have in these accounts and between them.Property transactions would be: all property specific rents and expenses, allocated expense transfer to the master LLC and transfers to master LLC bank account for profit AND/OR property management fee.Master LLC transactions would be: Shared expenses going out, reimbursements/transfers from properties for their allocated share of those expenses coming in, the transfers from your properties deemed as profit AND/OR property management fee and then transfers to your personal accounts deemed as owner distributions.Other transfers that could occur is if the master LLC needs to transfer to the properties for capital expenditures above and beyond the reserves you might leave in their accounts.

If you are building to sell and your profit margins are higher for the larger units, that may be a good argument for building bigger.My rentals are in central and east Phoenix, so we have a lot of young professionals and small families we rent to. 

You don't need to find secret houses; you need to find houses that can be profitable. 

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.

Everyone would like to own class A property, however, the problem is that most of those places are NOT profitable for renting.

I grew up with a realtor for a mother, but she’s not too well informed on new construction.As it stands today, I have roughly 70k liquid and looking to invest in building a new construction home for profit.

H1B lottery is a big gamble and adds a lot of uncertainty.

When you go to sell, you're subject to tax on the amount of profit between your adjusted basis and sale price, not your purchase vs sale price.Recapture is NOT repaying the depreciation.