I have a couple of properties in DFW (2 duplexes and 3 SFRs) with fractional ownership with out-of-state investors.

These are areas in a state of flux that can either become better areas over time and the investor wins big or they can fall back into war zones again.I see that as gambling and if you do that you might only want to make it a very small fraction of your overall net worth to invest.

Local real estate clubs are your best resource for finding potential borrowers.Alternately, fractionalized loans are legal in CA and there are many brokers who arrange these.

Don’t care about anyone’s political beliefs, just think we all should be informed, full disclosure not a fan of Bernie. https://berniesanders.com/issues/housing-all/ If by some miracle he were to be elected POTUS he wouldn't be able to push through even a fraction of his radical ideas.

@Dave Nye I’ve seen a few companies trying to use it to sell fractional shares through digital securities.

@Bill Brandt Yes, it is becoming more common to be able to buy fractional shares.Warren Buffet is quite a character and I believe the only reason he has never done a stock split for the A Shares of Berkshire Hathaway is because he likes it that high. 

Buying the property is only going to be a fraction of the total cost.

Single-family home sales jumped 13.2 percent year-over-year, with 6,044 units sold, marking the eighth consecutive month of positive sales;The Days on Market (DOM) figure for single-family homes was unchanged at 68 days;Total property sales surged 14.9 percent, with 7,393 units sold;Total dollar volume increased 19.4 percent to about $2.1 billion;The single-family home median price rose 5.2 percent to $245,000, reaching a February high;The single-family home average price climbed 5.9 percent to a February high of $301,648;Single-family homes months of inventory was at a 3.5-months supply, down fractionally from 3.6 months last February but above the national inventory level of 3.1 months;Townhome/condominium sales rose for a third straight month – up 12.8 percent, with the average price up 14.5 percent to $216,170 and the median price up 16.5 percent to $176,500;Lease properties experienced a mixed performance, as single-family home rentals increased 5.8 percent with the average rent up 1.8 percent to $1,768;Volume of townhome/condominium leases fell 2.2 percent with the average rent up 3.5 percent to $1,607.

pid=1704Houston Real Estate Highlights in February:-Single-family home sales jumped 13.2 percent year-over-year, with 6,044 units sold, marking the eighth consecutive month of positive sales;-The Days on Market (DOM) figure for single-family homes was unchanged at 68 days;-Total property sales surged 14.9 percent, with 7,393 units sold;-Total dollar volume increased 19.4 percent to about $2.1 billion;-The single-family home median price rose 5.2 percent to $245,000, reaching a February high;-The single-family home average price climbed 5.9 percent to a February high of $301,648;-Single-family homes months of inventory was at a 3.5-months supply, down fractionally from 3.6 months last February but above the national inventory level of 3.1 months;-Townhome/condominium sales rose for a third straight month – up 12.8 percent, with the average price up 14.5 percent to $216,170 and the median price up 16.5 percent to $176,500;-Lease properties experienced a mixed performance, as single-family home rentals increased 5.8 percent with the average rent up 1.8 percent to $1,768;-Volume of townhome/condominium leases fell 2.2 percent with the average rent up 3.5 percent to $1,607.

At the moment I'm only realizing a small fraction of this loss on my personal return because my W-2 income is close to the upper MAGI limitation per page 5 of the 2019 Partner's Instructions for Schedule K-1 (Form 1065).