A "yes" to any of the above questions may indicate an S election is less attractive.That is why I suggested he get with a cpa and work his specific circumstances.We're in agreement and both mentioned this in our OPs.Doesn’t he have to issue w2s for the employees as a DRE or any other entity or election?

This also makes it so that I am not relying on the cash flow.I think where our perspective is different is that I believe that various indicators can be used to predict with a lot of accuracy whether a market is likely to have long term appreciation. 

If one section is sinking there would have to be one and most likely two foundation cracks indicating that portion of the foundation was a problem.

You can also look at the new build permit statistics by city to see where the building is ocurring and that will be key indicator as to which markets are growing rapidly.

I took a lot of heat in several online forums for my asking price.... and in the end Ive got two great tenants that are respecting our properties, paying rent (on time too), have JOBS, and a credit profile that indicates they will actually be able to afford AND continue to PAY.It takes time - dropping your price will open the doors to more marginal candidates... screen as usual (consistent too).

no questions once I provide a photo...We also provide a nice detailed letter upon moveout indicating what was done for them prior to their move in and needs to be done prirot o their move out

I know California law indicates the last 2 weeks before move out.   

Using funds, or incorrectly collecting funds and not applying them as indicated is particularly illegal. 

Howdy @Jennifer DavisToliverIt is possible, but, very difficult for the reason @Chris Mason indicated.

Competent legal advice is required for this type of financing.Lenders of this type of asset will want to see some type of feasibility study that indicates that another operating motel in the market place will be successful against the existing competition and that you the operator of the motel has the background to run the business.