What role does each investor play in your business?

When the tenant buyer exercises the Option to buy a few years later, generally that has bought down our underlying financing and we split those profits 50/50 as well.

Probably not but then again, you aren't looking to help anyone out but yourself, and if the owner is too tired or naïve or distraught to exercise any further effort on saving their home or selling it for money in their pocket, better you get it than someone else right?

Perhaps you don't exercise the option until after they pass away, at which time there may be a step up in basis.

You can consider requesting during the board meetings that all interactions going forward are done via some sort of electronic communication, but at this point the HOA is asking you assume the role of the property manager. 

Redfin has a smaller presence with ~0.7% of the market according to it CEO and in our area it is preferred by more device savvy techies and had ~2% of MLS role based on MLS.

Your personal tax situation does play a role here as these are passive losses and there might be limitations on using passive losses to offset other income, which means that the loss on your K-1 might not be the amount of your deduction.

The tenant can decide not to exercise the option and buy somewhere else, or we could lower the purchase price, or the tenant could come in with a higher down if they really wanted the house.  

Whatever your answer is, it will get you thinking on if and how to proceed into the commercial real estate world.All that being said, my general answer is YES, it is a good strategy.First step should be to start educating yourself about commercial real estate, how its valuation is based on profitability and not strictly on comps, how to leverage the power of partnerships to get large deals done through syndication, how job and population growth start playing a big role when evaluating markets to invest in, etc. 

I know that most of that information will play a significant role in determining whether the property cash flows well enough, however I’m more interested in the numbers I’ve put in.