If you decide to pursue this option be sure to EXPLICITLY spell out how the maintenance of the buildings will be handled as these types of facilities tend to be hard on property from my experience.

That is more than 50% of the ENTIRE annual budget of CA for 2024. 

I calculate the annual IRR (yield) (sort of like the APY on a CD at the bank) for each deal sold; the best has been an unbelievable 78% and the worst has been 5%. 

If your parents do not have experience and you are eager to learn, you should come up with a strategy with your parents so that you can start managing the existing portfolio and finding a way to grow it.First and foremost I would maximize the property as much as possible now.How well is it maintained - any deferred maintenance? 

Then create a maintenance account.  

Until 2018, when it was closed due to low revenue and high maintenance costs 2.

Compare this to your total monthly costs, including mortgage, insurance, taxes, vacancy and maintenance.

Additionally, transitioning certain activities, such as maintenance and repairs, to be conducted directly through the business entity could strengthen your position for claiming deductions.

However, when you do the annual reconciliation, the property taxes would not show in the current year.

Today, that building generates enough passive income to cover his annual retirement contributions.You mentioned taking the 10% penalty, which I’d only recommend as a last resort.