I did a brief stint in REIT index funds after selling a few rental properties in 2021/2022 in an effort to keep a RE bucket in my portfolio and felt it was tracking similar to TSM funds but without the diversification. 

For scaling your portfolio, consider house hacking another multi-family property to minimize living expenses while building equity.

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

Some strategies to get around are:1. leverage your current portfolio and buy in cash, increase value, and then refi2. buy Multi-family so your ratios aren't the main factor to lenders3. get in with a lender for high net worth individuals4.

I have seen people buy non-existant properties, bottom of lake (literally underwater), slivers of land too narrow or small to do anything, Army bombing range, expired leases, cell tower now removed, property with 30 year lease and prepaid rent for 30 years, condemned buildings, toxic waste sites, land under railroad tracks, cliffs, landlocked property, wetlands, flood zone, unbuildable property, endangered species habitat, ....I have three rules for buying at Tax Sale:1.

We’re an MHC syndicator based in San Diego with a 15-year track record of strong performance.

According to the National Association of Home Builders (NAHB), average hourly wages for residential construction workers rose 10.8% between August 2023 and August 2024, the largest YoY jump since the BLS started tracking the data.

You would need to track everything you spend on the business unit and write those off and anything shared would be times 50%.

A multi-unit property was purchased for $140k. 

Hi Aaron - check out our lender page here on BiggerPockets - you can see info and a long track record of strong reviews: https://www.biggerpockets.com/business/page/49Also, sharing links to the 10-Part Article Series we published here on BP on everything you need to know about DSCR Loans - we are fully committed to transparency and providing info/guidance to the BP investor community!