But maybe I'm just talking to the wrong providers and of course in a Los Angeles and San Francisco context where naturally more basis would be allocated to nondepreciable land than in other locales. 

Rather than have your retirement savings entirely allocated to equities, you can choose to hold a rental property in your IRA or have your IRA lend money to other investors.

This logic is difficult for me to digest given this is mid-year and all the funds are allocated previous year.Anyone with experience or insights?

That was was my exact plan in regards to the multifamily in regards to the allocation of units but I did not know about the 203k until @Casey Murray mentioned it so now I have a much wider array of options purchase-wise.In your experience, is it worth trying to assemble an estimate based off of market rates and building specifications or should I just wait until I get the estimate from the general contractor?

The agreement would outline how profits, losses, and ownership interests should be divided, which will guide how you allocate the gains.  

@Bradley Hendrix, You can allocate the proceeds any way you want, as long as you purchase at least as much as you sell for, and use all of the proceeds in the 1031 exchange.You could sell the apartment and purchase Two SFHs with a 1031 exchange. purchase one for cash and the second with debt.

The benefit here is two-fold: (a) it outlines all functions and components necessary to complete a site-built structure from the ground up; (b) you have a clear template for allocating responsibilities on rehabs.

You can allocate your proceeds any way you like. 

Since I have not yet obtained a private loan on a property and dont understand it's mechanics, I have a question on a specific scenario I have been playing with: If a private loan is obtained and the down payment is payed for using a cash advance on a business line of credit, could you then turn around and do a cash out refi with a conventional loan, and specifically allocate that money so that you can pay off the business credit money and a large chunk of the private loan?

(you can find how much suspended passive losses you currently have on your IRS Form 8582 - which your CPA is likely not giving to you and in that case you should get a new one)@Yonah Weiss when are you going to get my cost segs done :PWhat Lane mentioned here is IRS code (Sec. 469(g)(1)(A)): upon a taxable disposition of a passive activity, the taxpayer may use any remaining suspended passive activity gain allocated to that activity first against passive loss from the same activity, then against net passive loss from other passive activities, and then as a nonpassive income.In practicality, segregation most likely benefits the GP side (LP not so much) and becoming RE Pro is almost nonpractical (except in Airbnb-self managed case); the PAL offset route is much easier to implement.