Utah market.

A partnership requires three things to be successful - Experience, Capital and Time.It looks like you have the capital and experience but maybe not the time.I have my doubts about this working if you have a friend who has weak credit and a limited cash flow.

The investor wants me to come up with a few options for how we can partner on a future deal (coliving home in the Cleveland market).

I have a STR in Truckee that has done very well and I am looking for another STR, was thinking of the Sacramento market but I hear conflicting info on the permit process and the ability to rent it out for more than 90 days a year as a STR. 

@Shane Smith Not familiar with flipping franchises, but if you are needing marketing and lead gen this could be helpful.

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

You have the ability to sell while limiting your capital gains tax because you lived in 2 of the last 5 years. 

Quote from @David Morovitz: I am researching Mobil Home Park funds and seem to keep circling back to Sunrise Capital Investors and Wellings Capital. 

A lot of my out of state real estate clients really like this market because the macroeconomics look so good for this market - population is growing, job growth is growing, and so many companies moving and developing here.

If you're going to start in a market you're eventually going to live in, I think that's a stronger case for that market."