I have invested 7 times. 5 of 7 are not paying out and have not paid out and now asking for more capital. they have no idea what they are doing. they are over their heads.

With seller's permission: Unscrew the shower head and put it on shower floor.

You have to buy right, know where the market is headed, know ALL of your expenses and know what your various "outs" are before you commit to a property or you will lose your shirt.  

@Jay Hinrichs yes to my knowledge there are other states that changed regs.Off the top of my head.

Like I see how it could work in a perfect world but i cant wrap my head around the idea that I could be making a profit if I still don't actually own the house and still have to pay down all of the loans.

Each year, I like to take time to reflect on the prior year and where I’m headed in the current year.

Obviously would be a slower process, but would create very little debt hanging over your head.

Yes that’s what I was initially thinking… then I started to structure the deal in my head and it looked a lot more like what you described with a partnership.

Thus, heis pretty excited and it has stuck in his head.

You can surely buy cheaper properties and obtain the same debt pay-down, but now you've got 5x the head-ache, so right asset class is more about efficiency when it comes to debt pay-down.Tax shielding is similar concept in that more expensive properties directionally give you more building basis to depreciate, which means less net income to tax.