At the same time, our passive investments have delivered much better returns than the stock market, and we've gradually reduced our 401k contributions to just the minimums needed to maximize company matching. 

Here are the numbers,Acquisition Price: $145,000Rehab cost: $42,000Holding Cost: $5000Sales Price: $244,400 Sellers Contribution: 5%Net Profit: $31,500Duration: 5 monthsThat's great return with borrowed funds from HELOC.

If our contribution was for 30% couldn't we structure it (in writing) to pay down a bunch of interest and live there rent free until sold? 

I really look forward to learning more and contributing what I can to this community. 

Put the max contribution each year... currently it is $6,000 annually.

Finally, the string of bad luck continues and the roof needs $600 in repairs, $500 would come from the tenant and $100 from the owner.Also, in the case where the owner is contributing towards the repairs, the agreement usually includes language giving them final say in any repairs. 

Hello All, Thank you for your contributions to these BP discussions...Truly helpful information for a newbie investor like myself. 

Thank you to everyone who contributes their time and energy on Bigger Pockets!

The only way for you to change that is to contribute more into your 401k or pretax deferrals that qualify as a reduction to your AGI and wont bring your MAGI at or above the qualified limits.Your other bet is to become a real estate professional to deduct all passive activity losses if you meet the two tests of 750 hours for the year and working 50% or more in real estate activities.

That contributes to a downward spiral in market values.