There is the concept (a very successful one) of inventory turn over, depreciation begins to wear out around 7 to 10 years, your assets have aged, hopefully appreciated and you sell and move on to homes that meet your requirements.

If your 1065 is done properly, the nature of the passive rental income will remain the same - no self employment tax.The concept of whether it's better to run it through an LLC vs keeping it in your own name is a topic that has been batted back and forth here on BP and elsewhere with no real conclusion.  

Hey @Ards Aram it might be ab it different bu the "concepts" are the same. :) 

Learning from some of the greats like Elon Musk, Tai Lopez, Will Durant, and Warren Buffet I hope to bring some of the concepts into investing and apply them to real estate with your help.

@Jarred Sleeth Here's a simplified model to show the concept.

Multi-family is good in concept, but carries more risk (repairs, tenants, scalable size etc).  

Beginning with the property on Barry Road, and going with a Rich Dad Poor Dad concept and assuming that is in Farfield, I would think that's a large liability and you will start by getting rid of that.Yes the House is in fairfield Vermont Good work Nick!

I have a difficult time comprehending things when there is no set time spent breaking down one concept to another.

He just had this duplex that he had owned for years and had neglected for quite awhile and just needed to get rid of it.Using all the great knowledge I'd gleened from both the Carlton Sheets course material and all the books I read, I fell back to the one concept I had understood, the first second finance."

The concept isn't that much different than bank financing.In bank financing, the bank creates a promissory note and collateralizes it with a mortgage.