The integration and ongoing access to consulting support may or may not be there in that model.Either using mortgages or establishing joint ventures will work.  

Always consult with your attorney before you rely on the above information.

I'm definitely not a tax expert and given the amount of money in question here your best bet is to consult a tax expert.  

you might be able to get some info at city hall or talking to other investors who have done it. one thing I might consider is getting in touch with investors who are currently renting out lofts and see if you can arrange some kind of meeting/lunch with them, if you make it worth their while, or are willing to help them or work with them or something, maybe even pay a fee for their advice/consulting, it might be worth a try. or if you can find someone who knows someone who will help you out, or just be able to show up somewhere and ask random questions if the opportunity arises. e.g. you could show up at open houses of lofts for rent if the owners show up there. check Now magazine listings etc. let me know if/when you have success with this, it sounds interesting.

When there is at least a basic understanding he should consult with a real estate savvy CPA to map out a tax strategy.

I sure hope that no investor or agent would believe what they are told without performing due diligence, consulting with an attorney, etc etc before heading into a new business venture.

Trust me when I say, talk to a lawyer or legal consultant, it's the only way you'll know for sure...for yourself.

We've all suggested she consult counsel.

I now live in a house that is worth than all that real estate combined and make more in half an hour of consulting than each of these units made me in a month in net profit. 

With permission from the owner, have an environmental consultant drill exploratory hole around the tank to see if there is contaminated soils (defined as over 2,000 ppm (parts per million) of pollutants).