But check out below what he said to me in regards to this: "First, there are depreciation issues among many other possible factors on the tax return which would be calculated into the K-1 numbers, along with the fact that there would be capital gain/loss rather than ordinary income.

View report *This link comes directly from our calculators, based on information input by the member who posted.

---I have been using the BRRR calculator and assessing various cities/states (because where I live, it's too expensive to make the numbers work) and finally found where the math works out. 

View report*This link comes directly from our calculators, based on information input by the member who posted.

How much money do you think I should be adding to my rehab budget if the property is running septic or needs a new septic? please and thank you

If that is the case then I'm pretty sure that what he is offering are securities and therefore such deals must comply with SEC regulations.I'm not an attorney so this is definitely not legal advice, your best bet to get clear on this is to talk to a real estate attorney first and also consult with an SEC attorney.

What if you accidentally under reported any sources of income or accidentally over-calculated any expenses on your tax returns?

I have never invested into property myself, but have been around it and know the fundamentals of how house flipping works. on the other hand I'm not sure how the cost to investment part is calculated ?

You *might* find someone truly knowledgeable, but your best bet is to again, find a professional service/attorney to help you.You need to learn your laws now so that you're not scrambling again  when you have an issue in the future.

Understand the fees involved and calculate the total cost for an entire year of management so you can compare the different managers.