If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

Quote from @Lorraine Hadden: @Steve K. 

If you have a significant amount of passive income (from passive investments maybe from K-1s or other rental properties), then you could use the apartment rental loss to offset that passive income only.

There was a member on here a decade ago that focused on these type of deals...K.

@Joshua Piche with little experience, it's better that you invest locally vs OOS - unless you want to invest a LOT of time learning another market and networking with th right people.Locally, look for a 2-4 unit property that will qualify for FHA 203(k) financing. - This will allow low down payment and the 203(k) allows repairs to be financed into the purchase mortgage.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

Quote from @Alex K.: Quote from @Chris Morris: Wholesalers in Detroit are making it nearly impossible to find good deals.

Quote from @Trace Adams: Quote from @Steve K.: Quote from @Krista Lance: Hi all - I have a new-modern day question regarding this: What about if I want to manage a "medium-term" rental (i.e. 30 days or more).

Ok, but from my house I can see what used to be a K-mart about a mile away.  

Fail to produce K-1s in time for LP tax returns to completed on time, refuse to communicate with LPs, when LPs start to express frustration.Cheryl Cheryl, I'm sorry to hear this.Many investors learn expensive lessons with their early investments.Knowing nothing about this deal (because I didn't invest) I can already tell you the 24% projected return was a major red flag (in my opinion).

When thinking about using a 401(k) loan for real estate, view it not just as an access point for funds, but as a strategic part of your overall financial plan.