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My ultimate goal is to generate $11K per month cashflow which I will be able to do with 7 properties provided they are all paid off. 

For turnkeys, most providers use 7% of the monthly rent for vacancies (but double-check that with the area the property is in) and 5% for repairs.

I am hoping to learn, network and even provide insight.Currently, I own and operate a property management company, PMI Cardinal, in the Charlotte area. 

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To take it a step further we have been taking loans from our 401K’s to help support down payments on rental properties.

My research shows that all the legal support for this strategy is resting on two very old and not even super relevant PLRs - Public Letter Rulings - issued by the IRS.

It has provided a way for our club members to diversify and spread their investments out.

He has to provide full rent by the 10th of the month or evictions will start.

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?