This is due to bonus depreciation which allows taxpayers to deduct 40% of qualifying property costs in the first year, in addition to regular depreciation for new construction and improvement.

This forum is super helpful too so I try to regularly review what’s going on and be as helpful as possible. 

Those that own it can be harder to sell as the cash flow from the business will cover the debt service for the business, but not for the real estate.Example: I had a very high-end assisted living facility on the market. 

A good attorney, RMLO, and servicing company play a big part of this. .

@David Lewis I'm regularly looking at multi-family listings on MLS and can only find cash flow in tertiary markets - think Lowell, Fitchburg, Springfield, etc.

If you asked me to run a ton of properties, I would still be happy to do it, I may just charge a service fee at some point.

This is a FREE service provided by the bank, and we have used this account for about 15 years or so. 

Are there many REITs that currently regularly engage in this type of feeder based structuring for a investors?

By all means give them a note on how to use all of the appliances (eg clean out the lint trap on the drier after each load, do not use dish soap in a dishwasher, change the furnace filter regularly, etc).

Usebramble out of California seem promising but they are not servicing Washington yet.