However, the amounts at stake are important and marketing-wise, it's not always easy to make the client accepting such a big commission.For example:Property price: 160kRenovations : 90kTotal : 250kCommissions for the asset manager: around 16kOur commissions: around 30kDo you have any tips to allocate those commissions?

I would then allocate the remainder between real estate and index funds/stocks anywhere between 30/70 to 70/30.           

@Aaron MoayedIf you dig far enough into IRC Sec 469 and the related regs, you'll find this:Treas Reg Sec §1.469-1(f)(4)Carryover of disallowed deductions and credits(i)In generalIn the case of an activity of a taxpayer with respect to which any deductions or credits are disallowed for a taxable year under § 1.469-1T(f)(2) or (f)(3) (the loss activity)—(A) The disallowed deductions or credits is allocated among the taxpayer's activities for the succeeding taxable year in a manner that reasonably reflects the extent to which each activity continues the loss activity; and(B) The disallowed deductions or credits allocated to an activity under paragraph (f)(4)(i)(A) of this section shall be treated as deductions or credits from the activity for the succeeding taxable year.When reading tax law, what is not mentioned is just as important as what is mentioned.This Treasury Reg section, taken together with the IRC Sec 469 helps establish there is no definite carryover period for passive activity losses -- as opposed to NOL carryover.

Usually between 20-30% of the basis (purchase price minus land allocation), is reallocated with cost seg on apartment buildings, and 100% or 50% of that can be claimed in the first year with bonus depreciation.As Mary mentioned, each property is different, and it is worth getting an upfront estimate to know what one's potential tax benefits will be.

I am as well, and for folks like us I would recommend taking a close look at the factors that you're examining while you do your research and be very honest with yourself as to which of these truly deserve your allocated efforts and which ones don't.

@Jim Klapmust, I believe that your use periods allocations only extend to the property you currently own and only count since 2009. 

If you've got that much dry powder I think it makes since to at least consider an allocation into an OZ based investment even if it is late in the cycle.

Cost to evict: $3,500 (supposedly a great deal) Perhaps the biggest one: Capex above estimated allocation or before reserves can be built up— Roof, Sewer Line, Windows, Appliances, Decks, Driveways/Parking Lots, Furnaces, Hot Water Heaters, Foundation/Structural issues, Fire escapes, Plumbing issues like sewer line backing up and raw sewage flooding a basement unit or a water heater malfunctioning and dumping 100’s of gallons into the building, overflowing tubs due to clogged drains and clueless tenants, broken/leaky pipes, etc. there are a lot of expensive things that will go wrong with every property.

Maybe a special allocation via a waterfall allocation schedule if this rises to the level of a partnership. 

As @Amy Wan indicated, the fees may or may not be impacted as the operator allocates the funds for GP side.