Your cash flow is reduced, but you have a large sum of money that even the debt free cash flow would take forever the equal.The question should start with how much money would you get either way, at what cost per month, and would they still be cash flow positive?

There are probably local groups in your city or state huddling together to figure out how to reduce the amount of money that can be made via real estate.

The amount of distributions treated as a qualified higher education expense with respect to the qualified education loans of any individual can't exceed $10,000, reduced by the amount of distributions so treated for all prior tax years.

It is getting too wrapped up in reducing tax while not considering your business goals and maximizing cash flow.I would look for a different CPA - 24 years of experience is great, but only a handful of investors in her client load likely means she won't be as familiar with many considerations of even a small property investor.

Hi Andrew,Any equity they pull out of the property in a loan or HELOC will have to be repaid and will therefore reduce their cash flow amount. 

Any costs that I can reduce?

As I grow my portfolio, I want to reduce risk, taxation and free up my personal cash vested.

Any costs that I can reduce?

As you can see, I'm new to this and trying to figure out how to reduce the risk to my family as much as I can before jumping in.

One way to get more comfortable with this, is to structure any excess capital that one of you brings as a loan, with a fair, but relatively low interest rate.However you decide to structure it, I would suggest hiring an attorney to reduce the agreement to writing.