You would work with other lenders and do a participation agreement, but many of them will require you to put in 20-40% of the money, have a net worth of 2x what they are including as they will want you to buy back the loan if it goes into default.3.

Make sure to also include in your calculation all the associated costs of those homes (maintenance, cap-x, management, vacancy, etc) then include the selling cost of the home since the appreciation isn't unlocked until you sell the home.

@Sam Dal Passive activity gains, such as those from a sold multi-family investment, can only be offset by passive losses, including accumulated ones from prior years.

You might be referring to income / expenses that are reflected by cash.Cash you receive from rentsExpenses that you pay out such as insurance, interest, taxes, etc.You may not have included depreciation expense which would bring your taxable income down further.It may be possible that the negative taxable income would bring your taxable income down.

These risks include, but are not limited to, lack of liquidity, limited transferability, conflicts of interest and real estate fluctuations based upon a number of factors, which may include changes in interest rates, laws, operating expenses, insurance costs and tenant turnover.Investors should also understand all fees associated with a particular investment and how those fees could affect the overall performance of the investment.

These include accidents (I recently had 2 units destroyed by fire), natural disasters (I have had two units each hit by 2 hurricanes), property management turn over (they sell or stop being as good, I have experienced both), or turn over of team (I am turning over at handyman and I suspect plumber), or just wear n tear of property (slab leak in poor location, sewer pipes rotted out (one unit this month), roof, foundation issue, etc.).  

Our business plan actually includes rehabbing distressed properties and conducting off-market transactions with owners currently occupying distressed properties using equity to reduce the out of pocket costs for the seller/buyer and to simplify the process.

Welcome to the forum @Chris Primavera.Seeing as you are brand new today, it would be good for you to search on the forum for those areas and read everything there is about those markets.Grab @Avery Carls book Short Term Rentals Long Term Wealth and read it. https://store.biggerpockets.com/products/short-term-rental-l...It is chock full of info that you need.

You will truly be raising the clock, as each day will cost you very significant money.  12% interest on $250k is $2500/mo, or about $80 per day in interest, not including your other carrying costs (utilities, property taxes, insurance, HOA). 

We don't allow any "deal-making" in the forums, which includes advertising your services or properties, looking for partners, etc.