I think getting taxed as an S-Corp adds complexity and comes with a cost and wouldn't be worth it until it could save you a significant amount of money.

Am open to larger properties (such as 10-unit+ apartment complexes, etc.) but do not think I could currently qualify for a loan on such a property at the time of refinance (assuming BRRRR), even if I could find a private investor to make the original purchase for me.* Looking at BRRRR strategy as a way to more quickly scale property acquisition due to limited capital* Seeking private investor to assist with increased property acquisition as time progresses* Ultimately seeking passive investments that require little to no attention which will provide income stream* Looking to accomplish 3k of passive, cash flow income within the span of 3-5 yearsI have a few obstacles as I perceive them.

Hello @John Knisely, Thanks for the advice we have talked over what are goals for the partnership are but haven't put anything into writing quite yet, but I think that it is definitely something I should do to make sure we are all on the same page.We are looking for a multi unit rental for our first property and would like to eventually move into some of the larger 10+ unit complexes when we have the means.

I'd love to find an 8-cap apartment complex in Encinitas (where I live) but it's not going to happen. 

Some HOA limit the number of rentals in a building/complex.

I eventually want to invest in large apartment complexes, which will require this type of in-depth analysis.

@Pete StorsethPlease do more studying before trying a complex deal like a sub2.

In the same complex where this unit was, there was a S8 tenant that was unhappy that their carpet was dirty.

I have been searching similar threads I am trying to calculate how much I should be holding back each month for reserves on a small apartment complex.  

Ones deposit goes 'hard' very quickly and legals can be more expensive due to their complex contracts.