I'm looking to the group for creative ideas that I can use to attract preferred equity to recapitalize an existing portfolio.

My plan is to speak with a CPA (which I will do shortly thanks to another BP member here for providing me a contact) to speak about this strategy but I wanted to present this to the community first.

Well in that move was a great quote "If you build it they will come" so I say that to say this.... if you get the right property under contract that has great margin for profit than you'll attractive buyers!

You mention the owner has paid $70k on the mortgage but that isn't a number that matters (since who knows what interest rate he's on or if he's made any extra payments), what matters is what the outstanding balance is on the mortgage and can you offer them a purchase price that is A) Fair to the owner, B) Helps them sell with some amount of equity and C) Gives you room that it financially makes sense.The numbers change based on if you want to flip it or rent it, making the question "does it make sense" different based on the direction you choose.In short, I have no idea how much I would offer...

This helps me gauge which units are desirable and priced attractively.

Rinse and repeat every couple years and you'll have a nice portfolio in a short time.As they say for Tempe: it's landlocked, and they aren't making anymore land.

Are there special short-term / long term rental taxes for these type of properties.

Any less and your in short sale territory.

Forming/ placing even a short wall is of course more expensive than a slab.  

HiI am from Northshore Chicago,would like to invest in  property went from short sale to direct into auction ,but don't the process of auction very well.