Because here, the proposal would increase property taxes about 5x.  

However, a full or partial gift means you inherit their $33K cost basis, potentially increasing your capital gains taxes when you sell in the future.

The homeowner collects a NET/NET 5% yield with 1% increases each year in long-term lease by a BBB+ credit rated tenant (similar to Morgan Stanley credit).

How do SFHs fare in competition with these rentals as supply increases?

@Greg ReeseMost small investors will benefit by having the LLC created in the state where the property is located at.Creating an LLC in a state like Nevada, Delaware, Wyoming may be better for the big players if items such as charging orders, business friendly case law, anonymity are important to you.However, be mindful that setting up LLC's in those states will add to your costs as you may have increased annual fees for annual LLC fees + registered agent fees.

You increase the likelihood that you continue to receive that $8,500 each month. 

We’re looking to increase our lifestyle through the decrease in housing and built a little passive income medium term. 

And while I agree that debt is often the cheapest form of capital, if you are looking at a project that involves some form of value-add business plan, you can always refi either when rates come down or you have increased the yield on the asset to exceed your interest rate.But like Stuart noted, for many groups, even the most seasoned syndicators, raising call cash for their deals is effectively impossible.  

Find the best local real estate investor meetups that have no pitches and you will increase your knowledge, camaraderie, and motivation ten-fold.

This has actually increased our bookings.