You're essentially paying a premium for a "turnkey" property, in my opinion, for this particular deal.  

Essentially, people could donate money and get tax deductions and then that money could be pooled to buy property, fix it, rent it and pay a manager.I’m assuming it would be similar to a self invested Ira.

The special allocations must have "substantial economic effect" (essentially meaning that cash flow to that partner could be impacted somewhere down the line by the allocation) When you start getting into partnership tax law and special allocations it is probably a good time to loop in an attorney and/or tax pro.

Remember also that the interest on the loan is taxed at ordinary income rates.So for example lets say you have 100k and were making 8% in the markets - 8k per year and say you are in top bracket, you will pay $1600 in taxes per year or netting 6400.Now lets say you did a loan and were at 5% you are earning $5k per year (actually less because principal is being paid down and some of money goes into essentially a 0% checking account).

Would love to see how performance pans out over the longer term.Also, my personal gut tells me with turnkey that the properties are not BRRRR'able as you're essentially getting them post-renovation for their actual appraised value and not below.

They are drafted in such a neutral way that parties have to go to court (or mediation) even when one party has no legal ground to stand on.The contract language here essentially requires either (a) joint instructions, (b) court order, or (c) 2 years of inactivity with neither of the above occurring. 

I am thinking of adding 2 stories on top of the garage (essentially rebuilding the garage) and adding north of 1000 sqft livable space.

And essentially flooding the market with new investors all doing the same thing.

I'm seeking insights and guidance from professionals with expertise in residential development.I'm looking to understand the essential evaluation parameters for residential development opportunities and learn about efficient quick & dirty underwriting.If you have relevant experience or knowledge, please reach out.

Just pay it on time.Cost – When a lender calls a note due, that is essentially them foreclosing on a property.