If someone is bringing part of the closing costs, it’s common for them to receive a portion of the equity that reflects their financial contribution compared to the overall deal.

There is more that goes into these decisions than pure financials sometimes.

I'm not sure they would serve a purpose for me then, but for working class people who do more often have financial stresses it is an incentive for sure and also it compensates you for the lateness.

This can hurt you financially, and it can hurt more than tax savings.I'm all for tax planning, I do it for a living, but don't lose the bigger picture while focusing on taxes. 

These loans are based more on the property's income potential rather than your personal financials, though your personal credit might still play a role, especially if your LLC is newer.

I've been ruminating over the low rate environment recently and whether to refi one or more of my long-term rentals, but I just struggled visualizing the full gamut of financial impacts, e.g. loan cost inefficiency, 30yrs vs 15yrs mortgages, maximizing cash flows vs cash-outs, tax positions, etc.

- How often do you provide financial reports to owners?

Odds are you will lose your EMD if you back out, which may be a better option than sticking with this deal (depending on the amount and how it impacts you financially.)

@Hector Espinosa Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a Class A property in Class D area, what quality of tenant will you get?

As the portfolio grows or, if through networking we found more clients, relocating might make more financial sense.Before moving forward, I’d love to get some input from the community:1.