After one deal you'll have a better sense of how to structure the operating agreement for any future deals.Recap: 1) Get competent counsel to review;2) Use this for one deal;3) Make adjustments, including (possibly) crafting an entirely different arrangement from what you learn;4) Keep moving forward!

He acknowledges all types of needs from real estate investors and do quick work for low end homes, and meticulous work for high end homes.~ Yoshi 

He can do quick works for low end houses, and meticulous work for high ends.~ Yoshi 

That's when I learned the power of a well crafted lease (more important than a good property manager).  

Explain your goal to a professional and they can help you to craft a plan to transfer the asset with the least tax impact or explain the consequences of transferring it all at once.You will run up against gift tax if you transfer the property outright because the FMV of the property is well above the annual gift exemption.If you sell the property and pay long term capital gains and then gift the proceeds to your daughter you still face gift tax.I hope this helps.Ed

Elizabeth and I used to own this business- we sold it in 2012:  Floor Craft Sanding.

Folks often describe what I have done as requiring courage and a "gamble" and while that may be true to some extent, we were careful to analyze our moves meticulously and to mitigate risk to the greatest extent possible.  

I'm prior military so I'm a very meticulous person, I just want to succeed in this business by any means possible.

I would recommend you find yourself a fee-based financial planner who could look at your total picture and help you craft a plan to reach your goals.Things I have not heard you describe are insurance, estate planning, and taxes.  

My point to all of this is to say and give examples of how you can make money investing in RE in any market, be it a low CAP or high CAP market if you understand how the various profit centers of REI work and are able to craft and execute a strategy that maximizes profits for those particular market conditions.