The k1 is passive income to you taxed at the favorable capital gains rate.

These were around the times of another group, Remington Capital was doing the same thing. 

You could plan to be able cover debt servicing for 6-12 months, maybe park the capital in safer and easier to exit investments like bonds.

I am most interested in doing a few flips first to build some capital and then transitioning to the BRRRR strategy.

I will have to pay capital gains taxes in either case as I've owned less than a year.

We also always try and use the delayed financing approach if possible as we can recycle that capital as soon as we close and sink it back into another deal. 

@Brandon Bruckman, I heard back from my CPA and she confirmed that I can pull up to my basis out of the REIT by selling REIT shares/units without incurring any capital gains taxes since it is considered a return of capital (ROC). 

i generally would not - i want the capital for other things. 

Any excess amounts in the master are then assets or liabilities or capital of the master which are noted on its books. 

The capital cost short and long sucks though, no argument there!