@Ana Vasquez IRS (And the state of Texas for investment companies) treats all three companies the same for tax purposes.

Do your homework and treat the area like any other?

All you can do is treat as quickly and effectively as possible.  

@Rich ThomasIt looks like your tax professional is doing it incorrectly.Sometimes an accountant will select a couple boxes and be like "oh if I click this box, he will get a larger refund, let's do this".The fact that you are a limited partner in a partnership, your loss should be treated as passive.

The more you treat it like a true business the better the relationship with go and so with the business.  

Maybe (Big maybe) if it was structured right, like a lease option or land contract for deed and done right, down the road the buyer could treat the transaction as a refinance and everyone actually could come out a winner but for 99% of "Subject to" transactions, someone always gets screwed and the lender usually finds out.

You have little or no control over whether they hoard cash and let the community fall apart, hire the HOA president's brother to paint the buildings pink, raise the HOA fees to the point where you are cash flow negative,  lower the HOA fees to the point where the HOA goes broke, or fail to treat a termite infestation or cut the grass.2.

- What are concerns with HELOCs if we plan to lock in rates on the $$ used, pay down principle ongoing, and treat it like a loan (with the benefit of a revolving credit line)?

For instance if I have two 2-1s, will they treat it as a 4-2 or two 2-1s?

The Fair Housing Act states that you cannot refuse to rent to someone (deny them housing) or otherwise treat them differently based on their race, color, religion, sex, disability, familial status, or national origin.