Hi all,I manage a recording music facility based out of Queens NY. We've been around for 40 years and are now looking to expand and purchase another warehouse in a different state which we could turn into another reco...

Also you'll have K-1 pickups on your 1040 rather than schedule E/schedule C (always a better move). 

Keeping the overall cost under ~ 250 K mark.

In any case, if it is a fractionalized investment (a number of silent partners) it is probably done through an LLC, and the sponsor will produce a K-1 as pass through income, and will detail what kinds of returns and deductions are in that report.To fully understand this you should ask the sponsor and consult your CPA for the implications in your particular tax situation.

@Greg K. yes that was a bad example the interest and fees would probably have eaten up all the equity.

So somehow this is meant to safeguard the indigent owner.There was an offer of $115 k vs a sales price of $119k  so now I am in position to "Upset" the offer if I choose. 

As @Jim K. stated to many human elements come into play you cant control.. and its one reason I am so bullish these days on new construction its easier to manage costs and I don't have to compete with all the wanna be wholesalers out there..

I agree ,Don’t borrow from the retirement plan .i disagree about what to do with the 40 k you will get on the sale of that property .

@Jim K.

That deadline starts ticking the day a Notice of Deficiency (results of the audit) are sent to you.