I am watching numerous BiggerPockets videos and taking advice on how to properly control my finance for this adventure.

The unit is now completely paid off.In the last year or so, several issues with building have been surfacing due to long-term neglect of previous management companies and the original developer/renovator (in 2006).

My lease also says I am authorized to show it to potential buyers or renters with proper notice.Some tenants fight this and I typically let it go because I know they'll sabotage any showings anyway.

Transition all tenants over to your own rental agreement as soon as you can.Inspect each unit by giving proper notice to enter.

Are you suggesting not to start investing until you've saved up the proper funds to do so?

@Pat Jackson You should read these threads - in one of them I also posted a list of questions you need to clarify with your partners:https://www.biggerpockets.com/renewsblog/effectively-conduct-joint-venture-agreements-as-a-real-estate-investor/https://www.biggerpockets.com/forums/48/topics/596231-how-do-i-properly-construct-a-purchase-with-a-partnershiphttps://www.biggerpockets.com/forums/51/topics/591376-create-an-llc-for-first-partnership-best-way-to-do-sohttps://www.biggerpockets.com/forums/51/topics/526244-taking-on-partner-s-and-limiting-our-liabilites

@William Huston, One of the best strategy relating to proper use of Mortgage is to offset your mature properties income with newer properties interest deduction. 1) Mature properties will start to show more taxable income as interest payment decreases with time. 2) So, use newer properties to offset those income. 

How does this work as a proper partnership so it’s all correct?

You really need to read LINE by LINE the CC & R's of the development.

(e.g. contiguous)- Comprised of 4 parcels:P1 - 70 acres with 2250sqft 200yo house and 20yo barn.P2 - 35 acres with under conservation easement.P3 - 5 acre minor sub division home lotP4 - 5 acre minor sub division home lotSITUATION- Seller is 70yo and retiring in 2019- Seller has heIrs who are absent and uninterested in owning the property (will eventually sell inheritance)- Seller is a frIend and neighbor of the famIly- Seller (and our famIly) have preservation/non-development hopes for land in the neIghborhoodOUTCOMESFor the Sellers:- Immediate cash lump sum (property needs some work)- "Guaranteed" monthly/annual payments for deal term- Retain ownership and occupancy of real estate until they vacate- Seller retains ownership if buyer defaults- Continuity of neighborhood legacyFor the Buyers (us):- Acquire property rights- Fixed sale price- Known caretaker/occupant- Continuity of neighborhood legacyDEAL OPTIONS- $450-500k sale price- 10% down- 20 year term- 0% Interest- Land ContractThis seems like a good option to consider in terms of managing tax impacts to both parties, but at the cost of fewer “ownership rights” for both parties.- Seller FinancingThis seems like a good option to consider in terms of better “ownership rights” for both parties, but at the cost of trickier tax implications.