We invest in Greene County, Ohio and currently have 24 low income units. 

Rental gives $500 monthly income from $2,000 rent.

K1s show your share of income or losses from the partnership, and you include it on your respective personal tax returns.Now, to your partners.

Here is some clarification:When property inside of an IRA is financed, it generates UDFI (Unrelated Debt-Financed Income), the income derived from the leveraged portion of the property. 

However, there's a critical detail that many tax advisors conveniently overlook when promoting these studies.Here's the uncomfortable truth: If you're a high-income earner (AGI > $150,000) and not actively managing your properties, those promised tax savings might be locked away for years.

Quote from @Olga Daisel: @Randall AlanI agree with Randall on getting more details, $7K gross a unit btw is a great gross income.

You mentioned W-2 income as part of a way to save on taxes. 

My plan is to funnel the rental incomes from all three properties, along with my W2 income, back into the HELOC while covering all expenses from it as well.

Being a real estate professional allows you to treat the income as non-passive, allowing higher high income tax payers to pay less in taxes.

San Diego’s average house hold income is about what you stated, but the median is a surprisingly low (considering US news and world report lists it as the most expensive US city) ~$100k.