Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

These areas tend to have more affordable properties compared to central Phoenix and still offer strong rental demand and appreciation potential.

And don’t overthink—your first deal doesn’t have to be perfect; it just has to get you in the game.You’ve already taken a big step by asking for guidance, so keep that curiosity alive and stay consistent —let’s crush it!

2) What is the average rent in this market and how does your asking price compare?

Mashvisor – Helps compare long-term vs. short-term rental potential, especially useful if you’re weighing both options. 4.

That’s a 6.7% jump compared to last year and 3.6% higher than November.

We have created work instructions for every step of the process so we can maintain consistency in how we evaluate properties, communicate with tenants, market our properties, handle rent increases, manage property turnover, etc..... 

There's no massive swings going on here, just consistent growth.

I gave them consistent feedback for years and still believe they could have made $10m or more off of my ideas.

Just to make sure we’re both on the same page, I’m referring to the annualized total return that is included in the bigger pockets rental calculator — I wasn’t intending to compare RE to stocks, but maybe I’m missing something in your answer.