In other words, you will be taxed twice on the money that you do take out essentially. 

----------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Small Bay Solutions offers flexible leasing options tailored to meet the unique needs of each tenant.

Usually, it will be allocated by price or sq footage or something that is a common factor by your accountant.If you use the purchase price then 46% of the basis would go into the 170K house. 

Original investors are taken out plus profit in the sale.  

Our first one took about 3 years to fully finish out.

The clients we work with who have found success letting us help them find highest and best use of properties, then we manage them for a year, and then pull out 60-70% of their money, and do it again - rather than waiting several years for a home run hit. 

Your first move at 18-21 should be house hacking (buying a small multi-family and renting out units).

A lot of investors are jumping to secondary lines of insurance coverage and the problem with those is that the companies are based in the Cayman Islands or the Bahamas a lot of the time, and it is suspect that they would actually pay out if the need arose unfortunately.   

@Shaun OrtizMy first deal 19 years ago started as kind of a mess, but I got it cash flowing after a few months.