This is no different than stock investors allocating more of their portfolio to bonds and cash as they get older.

However, if you have support for the deduction(HUD/closing disclosure) and a proper methodology of allocating cost to the property and land - you should be fine.

I have 30+ properties and tag and allocate mine twice a month so it is easier at the end of the year (yesterday I did taxes on 24 of them in 6 hours)  How are you able to determine what property is performing and what isn't without tracking it by property?

Divide the sale proceeds in half and allocate one half of your capital gain due to appreciation to the sale of your former primary residence. 

If it does include that - I would use that valuation.There are multiple methods the IRS allows you to allocate the purchase price between building and land.

What are their management fees and how are funds allocated ?

But if there was a going concern business that you wanted to purchase that consisted of both land/building and other assets you could 1031 your investment real estate into the land/building allocation for that business.

Many time when you show up in person, it not only help build relationship but they also waive the fines, after all they are doing their best for their residents by accepting non paying job and trust me it is lots of work and time they all allocate.

Typical items to include in a partnership agreement include1) How income, losses will be allocated to each partner2) What would happen after the result of an unforeseen event(ex. death of a partner)3) how/when the partnership will disolve4) Who will manage the partnership5)etcOnce you have the partnership set up - the partnership will not be eligible for conventional financing.

Just remember; K1's (taxable income allocated to you) and distributions are completely separate topics and almost always move independently of each other.