If the LLC is the maker on the note, there's a good chance you'll be required to personally guarantee the note.

Now I gotta get linked up with a good contractor and see what they have to say. 

Transitioning her to Section 8 is feasible but not guaranteed in the short term due to the waitlist and eligibility process.

This is most of the depreciation you are taking year one.You can calculate your depreciation recapture by taking the sale price of the asset and subtracting the adjusted cost basis.The adjusted cost basis is what you paid for the asset plus any improvements you made along the way minus the depreciation you took along the way.The profit above this original cost is taxed as a capital gain, but the part linked to depreciation is taxed at a maximum rate of 25% under the unrecaptured gains of section 1250.To recap the tax rates are:- Sec. 1250 real property: 25%- Sec. 1245 property and 15 year 1250 property: Ordinary Tax RatesThere are ways to minimize depreciation recapture especially if you know how to work smart with your CPA.1) Asset Valuation at Time of Sale - Sellers can minimize recapture by reallocating the price of the assets on sale.

I suggest you start out by meeting like minded people and here is a link to a local meetup in the OC: https://www.biggerpockets.com/forums/521/topics/1225233-ocre...Good Investing...

It's no guarantee but it's a good place to start.

Feel free to let me know and I will be happy to share the link. 

These resources will teach you how to handle the various tenant problems you are guaranteed to face if you invest in real estate. 

So if they can get guaranteed 5% interest in an account they can get their money out of at any time they’ll want 8-10-12%. 

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