A couple months ago there was a guest on the BP money pod that said something I really liked, "put your risk in your ROTH" and by that he meant that if you're going to invest in something riskier that has the potential to have large returns, put that in your ROTH account because you're only taxed on what goes IN to your ROTH, not what comes out.

I had a couple other ideas to salvage the deal first.

They are all on separate parcels, paid off and occupied by long term tenants.

What is the best way that you have found to tell them that you need labor & materials separate, so at tax time you can send them a 1099 for labor?

It is a corner lot, so they actually have two separate driveways, which is great for privacy.

I am now under the suspicion that their friend, the one who is still living at the property, is the one who created separate accounts for all three of them and did the signing for each individual who is under this lease agreement. 

However, could she gift half the property to the son who lives with her, which would allow them each to use their own separate $250k capital gain exclusion? 

Hi BiggerPockets community,We are a married couple based in the California Bay Area, both working as software engineers with a combined income of close to a Million USD.

I would suggest doing these separately however since you will run into issues with a partial release clause on a blanket loan.

Granted we only have 17 but still, I’ve never used anything except a simple excel spreadsheet and all my rental properties have a separate savings account under my main account at my local bank.