This would require you to each report your share of the activity (depreciation included) on your individual tax return according to ownership %. 

Don’t forget to include potential points.

There are several factors: Large Student Market:  Winston is home to several universities- Winston-Salem State University, Salem College, University of North Carolina School of the Arts, and Wake Forest University/ Wake Forest University School of Medicine.

@Raj Patel too many other factors to know.

Here is one I added to this list specifically resulting from this transaction:      Are there any persons or pets presently living in any of the units that are not included in the lease agreements?

I’m interested to know how to get around it when my taxes & insurance (including flood) are all paid through an escrow company. 

Does unit 1's leasable area or use of the space include any part of where you will be building? 

In the markets I shop, there are plenty of properties that will cost around the 80k mark total (including rehab).

This law imposes duties on the landlord including: Abiding by any applicable housing codes (including state, city and/or county codes), and maintaining the property in a safe and reliable manner.A tenant can sue a landlord for a slip and fall as long the tenant can prove the landlord was negligent and the negligence was the cause of the tenant’s personal injury (broken or fractured bone, scarring, or another serious bodily injury).

You also have to factor in future property taxes.