Determining whether the venture falls under a service or rental business hinges on the provision of substantial services; for instance, if a bed and breakfast service is offered, it must be reported on Schedule C, triggering a 15.3% self-employment tax.Moreover, personal use plays a crucial role in the classification of the property.

If you are trying to do them yourself and continuously fall behind, it might be a good idea to look into hiring a bookkeeper.

While I understand that some individuals utilize LLCs for anonymity, my primary goal is to prevent these properties from falling into disrepair or becoming abandoned assets in the city.Would it be appropriate to contact these lawyers to discuss the status of their clients' properties?

I think the bad advice falls into the following categories1.

If he doesn't have the $10k for EMD how is he going to have the $10k to pay you back when the contract falls out? 

As I see it, you are just another victim of the Groves, and you just helped them with at least $20k to keep their lavish lifestyle.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

Next time you check out Houston, you can take a wide look at Katy, Cypress cause 99% of investors stick to those lower-entry points but take a look at Spring branch, Meyerland, airline heights, montrose, memorial park and don't fall victim to people pushing 3rd/5th ward.Austin has a lot of really good neighborhoods, but none are as great as say River Oaks or Piney Point.

If property values fall and you are forced to sell you would be wiped out.

The con here is evaluating the sydicator, checking their due diligence and financials are correct and conservative, and then making sure no games are being played. over the past few years, many folks including myself have found themselves victim to overly aggressive syndications where the operators were reckless with investor funds.