To "soften" or reach a compromised we agreed to ONLY have $30K of the $60K in funds be considered "OPTION CONSIDERATION" funds (giving us the EXCLUSIVE RIGHT to buy the property at the $300K Purchase price) and the OTHER $30K of funds would be STILL be given to them but we informed them that it likely will be consider TAXABLE INCOME to them.

This is very hard to maneuver, and even harder to make work despite tenants agreeing.

I agree with @John Underwood.

Agree with @Nick B.'

(An exception is if you own 5% of the company you work for)Agree, this is a great summary post on REPS with core concepts on how to qualify. .I think the complexity comes in when people have edge cases - it becomes difficult to write a simple short post that educates everyone.

I agree that you need a mentor in this business and even the greatest investors have mentors.

Adam, I do agree that it is prudent to get them out quick.

I would agree for sure.

Quote from @Evan Polaski: @Jay Hinrichs, coming from someone that works in syndications, there is a part of me that agrees with you.  

As it was my first opportunity to get some skin in the game, I jumped on the deal and we agreed on a 5 year ballon (4% rate, amortized at 15 yrs).