This method allows each partner to defer capital gains tax on their portion of the property.It's important to perform the "drop" (distribution of property to partners) well in advance of the "swap" (sale or exchange) to comply with the "held for investment" rule.

They are not well suited for a novice.You may see auction results that look appealing, but you don't consider things likea.

This has been my strategy here in NOVA as well - though true multifamily housing stock is hard to come by as you are probably already aware.

Although that would be looked down upon by a lender as well because of the inherent risk of lending to someone who has too much on their plate. 

We want to get a few rentals up and running and then (if all works well) begin bringing other friends/investors in to invest with us.

I am a licensed agent in Kansas and Missouri as well as looking for my first investment.

I see value in working with people who want Midwest entry level homes and as well as the higher end New Construction stuff in growth markets.

Also if you have any more info on it thats not well known if you could please let me know thank you

Are you thinking about managing versus a property manager or are you also thinking of selling as well?

Quote from @Max Ferguson: Quote from @Jay Hinrichs: Quote from @Max Ferguson: I'd be interested in hearing about it, but I can almost guarantee if you aren't extremely well versed in the local market you will not find an end buyer.