But equally important for you to think about is going to be the allocation of your net proceeds in the purchase. 

Even worse, all of the depreciation recapture taxes allocable to the $500K will be recognized and due in the year of sale. 

I was lucky enough to have a small penny stock I was allocated to hit and used my real estate passive losses to make my gain tax free :) Sometimes we get lucky! 

As I discussed with Tyson at the conclusion of the event, it was very clear that no matter the experience level or how many millions of dollars in capital a panelist has allocated to the build-to-rent business, everyone was there to learn.

Additionally, I do allocate a minor percentage of my net worth to investment with more growth potential, like land development deals.[...]Finally, what investment do you make to accomplish your financial goals?

Does the K-1 show depreciation allocated by % ownership?

All expenses directly incurred for the ADU are 100% allocable to the rental unit. 

Of that 50M, 25M was allocated for the construction of a new recreational faculty that has since been completed.

Is the $230/mo cash flow after allocating for vacancy and cap ex?

This implies it should be allocated a maintenance/cap ex cost.