If you own a property through an LLC, you won't be able to receive any tax benefits for owning a primary residence (mortgage interest rate).

However, I just received a contract on it last night!

Great response and i'm very happy that my first post has received such a knowledgeable veterans inputTo answer your last question of would it be really shady that it's so far below market - what i'm noticing is that they are giving me pro forma numbers (best case scenario) to make the place look like a good deal, and my concern is that if the rents were too far below that, there may be a reason that they are hiding for it.

One possible structure would be for the LPs to receive a preferred return, and then any residual profits would be split between the GP (you) and the LPs. 

Received a $1M offer on a 16 unit building that I purchased back in March - leaving me with a nice profit.However, I am expecting 30% in short term capital gains between the state and federal and a prepayment penalty of $6000.00.Thus, unless I can 1031 into another deal...this transaction may be tough to put together.Any ideas on how I should source deals and find a way to defer my taxes?

What documents can i expect to receive before I agree and pay my deposit to them?

@Adam YetterI would say if your partner is strictly passive he should receive between 50-75% of cash flow and equity..

Everything went smooth with the purchase and initial property turn over until I received a letter from the HOA management stating they knew that I was going to rent the property and that I had to wait a year before doing so.I was surprised by this requirement.

The seller has an on-site property manager in place receiving free rent for one unit + $1000/mo salary + another unit as an office.

He’s received two full price offers and hasn’t accepted because he wasn’t comfortable.