Let everyone know what you're looking to accomplish BUT first let them explain their value proposition!

No one had confidence in the long term value proposition of real estate coming out of the great recession, so properties needed to cash flow, aggressively, to make sense.

That was my value proposition at the time and I learned a ton.

The $500K exemption might not be enough for a lot of people...this is why this is all so regional  many parts of the rust belt the values peaked 20 to 30 years ago and have been eroding ever since.. so get that they don't have the same upside all the west coast folks have .. nicely bought west coast properties especially if you built them yourselves will be plenty of money you don't need rentals.. you get tax free money when you sell then keep rolling it.. that's what many builders do .. and I know I have done it 6 times since I bought my first home in Silicon valley in the late 70s.. and I am just one of millions of other west coast owners who have done the same.. and of course those that bought rentals on the west coast plus their homes have serious equity.. those in the mid west or rust belt the only value proposition basically is cash flow and number of doors since they really don't get or have gotten meaningful appreciation..  

From what I've seen it's a lose-lose-lose proposition:1) You either evict the whole group and start over if one moves and the remainder can't pay or2) You waste your time screening new people to find a replacement person for the one who left or3) You allow tenants to do the screening for you and potentially pick another unsuitable person because they don't know how to do screening.

I think for a part of your portfolio, investing in apartment syndications is an attractive proposition, especially if you want to diversify out of state and have no time or interest to be active.

It is a very attractive proposition and I am looking how to best structure the partnership / equity buy out.

I think what Matt Mason referred to was not the Article of the CA constitution limiting property taxes to 1%, but Proposition 13 -http://en.wikipedia.org/wiki/California_Proposition_13_(1978), which limits the ability of the assessor to reassess the value of your property for property tax purposes... so if you purchased something in 1980 for $100,000 and its now worth $2,000,000 in 2013, your property taxes will be based on the $100,000 purchase price, plus limited annual increases -- they cannot just reassess your property based on its fair market value.

Maybe towhomes are simply a bad proposition to invest in by you. 

Or this this a cash only proposition.