If you are dealing with partners, I would highly suggest creating an LLC entity AND have it include a an operating agreement that covers who does what and how you will eventually dissolve the company/dispose of the property.Disclaimer: I am not an attorney nor do I play one on the internet.

(I do not believe that FIL will be very interested in using the proceeds as leverage for purchasing a larger property, but is more interested in a duplex/triplex of similar value).6) the wife and I would co-own with FIL, but actively manage the property Questions:Does this sound like a good approach?

I currently have a multi-family and a condo in Jersey City for rental.Beside NJ, I am actively searching for REI ideas in other states using BP. 

Sean, I just started being active in BP and saw your question. 

I am curious to hear from those of you that were active in the commercial real estate during the last recession and how you weathered the shock and pushed through it.

And, if you're going to be an active investor and use your license to help your investing business, then more power to you!

Switch over to past sales, and there are a ton of sales... but most of them aren't at those price points, they're just those active properties pre-flip at 100-200K cheaper.

Gives a brief overview of a lot of different ways to play the real estate game. 

The book is referring to the passive activity loss limitations imposed by Sec 469.You'll still be able to use expenses to offset revenue, you just won't be able to use a tax loss on the rental to offset other taxable income if you're above $150k in AGI. 

YUP  I could have flipped this plat to DR for a quick 1 mil profit but we decided to build it out and that brought us an additional million plus in profit .. of course you have risk reward.. flipping to DR takes all the risk out.. but we were and are confident in this market and price points.. the over million market is slowing a lot of PDX or taking a breather as I like to say.. but the 350 to 500k is still robust and that's where we play