Quote from @Eric James: I'll continue the strategy I've been using for the last 2-3 years, building small apartment buildings.

“Texas is the birthplace of the chip that changed the world—and where the future of America’s semiconductor industry is already building.

Fail to produce K-1s in time for LP tax returns to completed on time, refuse to communicate with LPs, when LPs start to express frustration.Cheryl Cheryl, I'm sorry to hear this.Many investors learn expensive lessons with their early investments.Knowing nothing about this deal (because I didn't invest) I can already tell you the 24% projected return was a major red flag (in my opinion).

Given the market conditions and your hard money loan, it might be wise to first calculate your monthly holding costs, including loan payments, taxes, and maintenance.

Heck, even within offices, the small 1-tenant office buildings suitable for a dental practice or law practice, those are in a very different world. 

@Chanel Snerling not sure why you are so focused on building?

They would get that $500K tax free and the rest of the tax would be deferred in the 1031.A very elegant solution that puts $500K tax free in their hands now. 

Mostly because the tax incentives are *insanely* good. 

According to our understanding:1) California does not recognize REP status, but we could claim it on our federal taxes, is this correct ?

That and continuing the current tax cuts.