Does the pref balance become locked because 100% basis has been returned or if no capital activity occurred, would year 2 result in an $8.64 pref balance?

I know a flood occured recently and a lot of houses have since been remodeled.

I know a flood occured recently and a lot of houses have since been remodeled.

My position was that market may take a possible downturn during Q2/3 before election year as during election year no recession will occur(with high certainty ) so we went after short cycle time , low/mid range price point and  minor to no work in /out projects.

If the income generating activity of the pass through entity is active trade or business income from an operating business, then UBTI occurs.

@Prash Aksh PMI depends on how much you put down on the property and will only generally occur when you're doing an FHA or 5% down loan.

If I don't pay for their PM duties  -are they still going to be the PM based on fee collected as things occur like renting, maintenance fee, etc? 

That is because if vacancy occurs it can be a big hit, need the extra cushion.

Either way I’ll figure it out, or maybe another opportunity to finance the deal will occur but I’ll start looking/interviewing some lenders from the area and meet with local individuals.

If that ever occurs, you can then talk about the possibility of Seller Financing which would be a benefit to you.