Most of our investors were accredited, but it was a 506(b) offering open to sophisticated investors, too. 

If you are buying in the nicer areas you need to do more sophisticated return calls that take appreciation into the mix.

I can see this working for sophisticated sellers for sure and nice set up kudo's on that.

Salaries paid out will show up as W-2 wages with income tax withheld and all necessary payroll taxes.

My lender wanted to see current bank statements, and several months worth of payroll statements, so they find out quickly how we spend our money and how much money on average we typically have on had on a monthly basis.I hope this was not too long winded!

Looking at syndicating an apt complex, I'd like to use rule 505 rather than 506 in order to allow a few investors that may not qualify as "sophisticated."

@Christy Greene There are some deals offered to non-accredited rather sophisticated investors.

@Ryan MooreProbably the best bet would be to take a look at comps from the last few years for the property you're using this appreciation figure for.For example, if you're wondering about the appreciation rate for a 20 unit building, you'd look at the sales of similar properties over the past five years to get an average appreciation rate over that time.It's important to consider similar properties because the market for a 100 unit complex is much different than the market for a 20 unit complex (sophistication of buyer and price range being the big differentiators).Also keep in mind that your fourplex is a residential multifamily property, not commercial.

Here are some things to include.Copies of leases and applicationsAccess to Yardi, Onesite, or other PM softwareDocumentation of debts, past due etc.Rental licenses3 years taxesRent roll with lease start, end, amount, and deposit. be sure PA prorates rents and transfers deposits with interest)Service agreements lawn, snow, cleaning, laundry etc.Copies of tenant notices  given within 90 daysOperating statements 3 yearsDisclosures, LBP, etcContracts for improvements in last 3 yearsEmployment contracts/ payroll Insurance policies and claims history 5 yearsinventory of property on site (office furniture, common area items, etc)Repair records for the building 2 yearsCopies of bills such as heat, electric, water, etc to verify (also helps with transfer)Copies of current inspections.Boiler logs Past litigationCertificate of occupancy Tax records (we will pull)warranties sill in effectfloor plansestoppel agreementZoning Historic designationPrepare lease assignmentsPrepare prorated rent and deposit agreement for closingThere are often many more property specific items. 

For the majority of 2017, I paid myself outside of payroll ($5K was paid to me thru payroll and $20K were just 'owner withdrawals' - my acc'tant said they must be recorded as "profit distributions").So, for 2017, I've been left with the following #s:- S-Corp profit: $10K- (personal) W2: $5K- (personal) profit distribution ("earnings"?)