Both allow you to avoid touching retirement funds while leveraging the value of your properties.

Yes, you will have to file the partnership tax return.

(It doesn’t pay its own taxes.

My son currently lives in the townhouse b/c he is going to school and works in the area.Since he is young and starting out in life, I would like for him to only cover the basic costs (taxes, HOA, utilities) just enough for me to break even (I believe that will put him slightly little lower than market rent rates). 

To make the most informed choice, get a Cost Seg feasibility analysis (free) which illustrates the expected tax deductions and then assess how those deductions impact your tax liability, based on your tax profile.

Someone can be a brilliant tax person but horrible to work with, and also vice versa. 

It'll be important to know how much taxes you're gonna be paying when you sell it.

Unless the price is well adjusted I would avoid structural issues all together.

For example, in my state PA there is an inheritance tax and many TAX auction properties originate from people passing away and the heir(s) not taking control over the estate and paying those property taxes.

You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.4.