I like Warren Buffet's advice to make sure you understand the investment completely before investing.  

We've seen 3% for 100+ unit apartment complexes, but they also have onsite staff not included in the 3% management fee.Two other pricing options to properly understand:1) Fee charged based upon tenant payments or just occupancy.

However, understanding the passive activity loss limitations is crucial before making this investment.

Understanding them deeply.

Quote from @Kwanza Price: Thanks Chelsea for your reply.I mostly wanted to understand what the experience was like and if you have any advice for setting up an LLC/IRA?

Chris- I understand the position you are in all too well.

Understandably, it probably appears that I am jumping the gun with only 16 units (maybe I am).  

Quentin, build your knowledge, make sure all this is done correctly.Banks rarely call the loan just because of the deed being transferred, something else triggers this, mostly because the investor decides education is not worth the money.It can be because the Insurance was not done correctly, the seller does not understand the process, the Title Company does not know what to do so they call the Bank and make a mess out of the process and a few other factors,If the investor is knowledgeable on what to say to the Bank if they call this is a fairly simple conversation to have.

I will look into these elements for this property to get a better understanding of what my options are.

So many people come in and are looking for a spreadsheet to estimate for them and they don't understand the basics of what numbers they are inputting.