@Dave Bobka @Justin Arnold So, if an investor is looking for a larger, family style home for a Section 8 tenant that is dependent upon public transit, this would be a great property, wouldn't it?

This person did not raise any money, they invested around $600,000 into the offering and because they were one of the larger investors were considered a Co-GP because it was a new sponsor and they needed this persons $.

Quote from @Bob Dole: All,Apologies for the newb question, but I just heard about cost segregation and have been reading up about it online.My understanding is this (and please correct me where I'm wrong):Pros: -accelerate depreciation, front load (vs. just a straight line over 39 years) -save money on taxes because of the depreciationCons: -if I sell the property, the recapture will be larger -not recommended if you flip propertiesSo hypothetical situation:-Majority of our income is W2 based, let's say it's $500k-Net income from commercial rental is $100k-Income from dividends and interests is $100k-Both of us are full time W2, so non-prof real estate (but this can change  -- please see below)So we're hypothetically grossing $700k a year. 

I think communication seems to be the issue here especially with your comment on how the PM is unresponsive.

They will issue an IRS Form 1099 in January, reporting your total taxable income to you and the IRS.

4.Tips to avoid similar issues in the future?

You don't need to be larger than life, driving flashy cars, or using your looks to make a sale.

I don't see it as an issue but many still do, at least in my small town where the majority of renters are elderly people looking for low maintenance housing options.

There's lots of properties for sale in the Smoky mountains so you may also have a larger selection of options to purchase as well.

Under $100k, were talking Old, beat up, it's coming with issues and the vast majority of time there is hidden uglies that come out later.