Worst case, they won't pay but that will definitely happen if you tell them you will forgive the amount.You may want to talk to a PM for the future. 

He may decide not to attend college, and I want to support his future by exploring real estate together.

Wishing you the best on your future and getting your portfolio started! 

I hope your future capex is not too heavy considering the houses in downtown are so old. 

Any trends or insights worth noting?

When you mentioned pulling out $110k, that’s the perfect snapshot of how equity can turn into future deals without selling outright.So, if you were to rinse and repeat, would you still go for another rental thta’s already turnkey, or would you look for something you could add value to?

Quote from @Jordan Brown: Hi my name is Jordan Im a future real estate investor, I want to submerge myself more in the real estate world and make connections.

The other benefit of having a structural engineer look and advise on the property, is that you can then use that report as proof to a future buyer or tenant.  

Partner B will get $220,000 + the single wide, while Partner A's heirs will get the apartment building and the double wide.They intend to sell one property ( the double wide mobile home ) and use the proceeds to either pay down the loan or reinvest in another rental property (possibly in another market).To defer capital gains tax, they plan to use a 1031 exchange for reinvestment.Goals & Challenges:Tax Efficiency – Structure the transfers and payments to minimize tax liabilities for Partner A’s Spouse and the Children.Guaranteed Income for Partner A’s Spouse – Ensure a fixed monthly payment of $1,100/month while transferring ownership to the Children.Long-Term Investment for the Children – Build a solid rental portfolio to support future financial growth.Operating the LLC Under New Ownership – Ensure a smooth transition, including removing Partner A’s Spouse and Partner B from the LLC structure.Proposed Plan & Questions for Advice:Instead of outright gifting the 50% interest, the LLC will be restructured so that Partner A’s Spouse retains a Preferred Equity Stake that provides them $1,100/month in priority payments but gradually transfers ownership to the Children.Payments will only be made when rental income is sufficient (i.e., when rent increases to $850/unit).Partner A’s Spouse is willing to forgo payments in bad financial times but wants assurance that they won’t face any tax consequences on unpaid amounts.If Partner A’s Spouse passes away before full ownership transfer, the Children inherit the shares at a stepped-up basis (avoiding capital gains tax).Questions:How should the LLC Operating Agreement be structured to allow withholding payments when necessary without triggering tax or legal issues?

Many of these conversions desperately need full gut renovations.If a property hasn’t undergone a major renovation in the past 25 years, it will almost certainly become your responsibility in the near future.