Fail to produce K-1s in time for LP tax returns to completed on time, refuse to communicate with LPs, when LPs start to express frustration.Cheryl Cheryl, I'm sorry to hear this.Many investors learn expensive lessons with their early investments.Knowing nothing about this deal (because I didn't invest) I can already tell you the 24% projected return was a major red flag (in my opinion).

Assuming this is an 8 cap neighborhood you'd have a ~$420-450k value within a year (unless property taxes are crazy high) when leases would renew since it'd be valued as a commercial building with the office space.

Yes, this is an unsexy option and it doesn't offer the same tax benefits, but you would benefit from reduced volatility (so long as you don't obsess over fluctuating stock prices), greater liquidity, stronger management teams and superior assets.

I'm assuming you are arriving at your cash flow number by applying Gross income - cap ex, maintenance, utilities, vacancy, tax, insurance, mgt, landscape/snow & Debt service?

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

Let's assume your expenses (mortgage, taxes, insurance, maintenance, vacancy, etc.) comes to a clean $600 and the property rents for $1,000.

Don’t forgot to look at all the ways properties make money: Appreciation (#1 way), equity gain through principle pay down, tax benefits, positive cash flow (never as much of a wealth-builder as appreciation is in good markets).

(gross rents $4900; 8% PM; mortgage+insur+taxes = $3600/mo).

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.

They were taxing as a fourplex, but the CO said it was a triplex.I found out when I went to try to refi with the bank.