@Will Almand A cost segregation (cost seg) study can accelerate depreciation on your properties, reducing taxable income by reclassifying components (e.g., appliances, HVAC) into shorter-lived categories.

2) wouldn't the interest be taxable to seller?

That shouldn't necessarily be a differentiator when choosing a lender, as evidenced by the boom of the DSCR lending industry....non of which are FDIC insured.

I file a KS return anyway for my W2 job.

@Gregory Wilson  - partnership return compliance has become insane in the last several years.

As for non-bank loans, I'm familiar with a loan program that provides 100% financing, but it requires a minimum 650 credit score and proof of funds covering 12 months of interest.

You can’t ask for a good cashflow amount, only a cashflow rate of return. 

All for a single property...It's a lot of work...for what kind of return?

Most residential syndicators value add and exit to maximize return.  

To only invest $5k into the deal with those returns is fantastic.