I’m thinking this could help us with tax deductions, especially if we operate at a loss.Does anyone have experience with a situation like this?

@Larry Caper if your goal is to do your own deals and you do not want to expose your investors to other operators then you need to create a fund of funds.

I'm trying to buy, fix, and rent real estate and created an LLC with my partner who is putting up most of the capital but he will not handle operations at all.

We are currently in the final stages of an AI driven software that is going to essentially allow us to manage co-living properties effectively, without any of the staff or operations typically needed by rental properties.

Your raise happens to be on the lower end of where such firms operate but certainly a plausible option assuming the investment thesis is sound & the GP checks out. 

For new prospective investors who have more money than time, I think this might be a better first investment than trying to be an out-of-state landlord.You do all of your vetting upfront—of the operator, the asset, the loan, and the area.

@Ryan Kline You either have a balance sheet we all envy or you are an individual who has no confidence in their ability to be a good real estate operator.

Do you guys operate in North Carolina?

We've already put together an LLA, and found a generic operating agreement online.

I now operate Iron Goat Home Services as a General Contractor/Handyman.