If the partners agree to specially allocate one item (for example, capital gains) 80/20 for economic purposes per SEE safe harbor, the corresponding tax amounts must also be allocated 80/20.However, IRS has a framework that can reallocate the partnership items based on the “ partner's interest in the partnership” if IRS determines the method of sharing the partnership items lacks the “Substantial Economic effect” (SEE) To meet the SEE, there are strict rules to maintain meaningful capital accounts including Deficit Makeup Requirement for those accounts.With the requirement, the partner must at some point contribute sufficient capital to eliminate the deficit, and the partner has the burden of the loss that partnership has and the allocation of the partnership will be respected by the IRS.This is a very high-level summary of the rules and is not comprehensive. there are many exceptions as well.Since the substantial economic effect, safe harbor allocation rules are complex and requires considerable additional recordkeeping, it's easier to follow PIP standard. 

I think your purpose for getting into real estate is great!

You can definitely read books on rental properties in general, and maybe a little bit on management (out-of-state you'll likely be needing to manage the property manager as your main duty).While I can't think of books specific to it, there are still lots of resources.

The sole-proprietor LLC will be pass through for tax purpose anyway at the end of the year.  

Another option if the main reason for you wanting to exit these investments is that you don't want to do the repairs yourself any more would be to hire a property manager to handle all of the maintenance, showings, and rent collections. 

Two main reasons. 1 is we make money a whole bunch of ways as I described above. 2 is you cannot keep all properties as you will run out of capital.

If you can afford IKEA or Amazon mattresses, get those.The main thing to keep in mind is your reputation is made with your first few bookings.

Hi All,If your main goal is to invest in rental properties and retire from the corporate world in the next 5-10 years would you choose a job that pays more, is more stressful, longer hours and more one dimensional or a job that pays 20k less but is less stressful, easier commute and more transferrable to other industries?

I have been in the real estate game since 2014, mainly educating myself and saving money to do my first deal. 

I'm a new investor in NC, mainly in Cumberland County but venturing in Durham/Chapel Hill area in the near future.