To me that would be simpler and also eliminate any additional expense to generate and record any additional documents. 

My goal is to build a real estate portfolio that can generate either passive or active income well into my retirement (58 years old now).

. $415K less rehab costs at $200K (20K/unit) = NET $215KYou would pay a % of the future value in this example, you certainly (and neither would he) wouldn't pay $1,392,857 for an asset generating $75K per annum, understanding that the value therein would be offered at a 3.2 CAP.

Take a look at the instructions for completing form 590, this will give you more insight.California wants to make sure you pay taxes on income generated in CA.

Continue to leverage and build your generational, wealth-building portfolio!

It is truly the best way to build generational wealth.

Some of these are paid off and generating rental income that we rely on for living expenses.

On top of that, while you live in the unit, you will not generate any income to offset your monthly mortgage payment. 

Real estate investing is the best way to build generational wealth!

The mountains of Western North Carolina offer great potential for a second home that can also generate income.