If you're looking to treat this as a regular rental, then charging undermarket rent throws a monkey wrench in that. 

Syndication Reporting IssuesMissing Form 8918 for reportable transactionsInconsistent investor disclosuresRequired registrations skippedWhat Doesn't Actually Matter:(Despite What Your Uncle's CPA Says)Special AllocationsNormal promote structuresStandard waterfall provisionsTypical developer promotesReality: Unless extremely aggressive, IRS rarely caresTechnical DocumentationMinor §704(b) gapsCapital account glitchesTechnical allocation languageTruth: Unless hiding something biggerProperty Value AllocationsNormal basis step-upsTypical appreciation splitsStandard promote calculationsReal World Example:🏢 100-unit apartment complex4 partners, $5M dealDeveloper promote structure= Zero IRS interestSame Deal With Red Flags:🏢 100-unit apartment complexHidden partner arrangementsArtificial loss allocationsUnreported debt shifts= IRS AttentionPractical Protection Steps:Basic Documentation✅ Clean operating agreement✅ Economic substance✅ Partner contributions tracked(Don't need War & Peace complexity)Economic Reality✅ Allocations match economics✅ Real money movement✅ Actual partner participationClean Reporting✅ Consistent K-1s✅ Required forms filed✅ Clear communicationThe "Sleep Well" Test:Can you explain your structure to an IRS agent without sweating?

It’s not just awkward—it can jeopardize trust, relationships, and, ultimately, the deal itself.Here’s how we ensure success:1️⃣ Weekly Syncs: Regular team check-ins to align on progress and updates.2️⃣ Shared Systems: Use tools like Slack or Asana for real-time collaboration.3️⃣ Transparency is Key: If you don’t know, say so.

Other than a few regular maintenance and wear & tear, we have had minimal expenses.

Share what you are looking for and the deals you are working on with your network in person and on social media regularly.2.

Transparency, regular communication, and clear milestones have been critical to making this successful.For those of you who are considering working with private lenders or want to improve your deal structure, I hope this gives you some food for thought.

Keeping clean records from day one really helps when tax season rolls around.

Prior to clean up make an inventory even if burned.  

We successfully set up the co-hosting on Airbnb where I receive the agreed upon 18% + the cleaning fee.

I'm going to be checking my BP more regularly.