We target properties B and C class areas that are “in the path of progress” next to highly desirable towns, in dense areas.

Communities get mad at STR due to the stigma but 30 day rentals are mostly working class right?

I intend to escalate to the small multifam asset class as soon as it's feasible, and this brings me to my issue.Current Situation: It's been almost 1.5 years in my primary and I'm sitting on ~155k in equity as of today.

Who will have to change out the equipment assets you currently have to match the intended new menu.Also, if the area is not Class-A it will be hard to draw upscale business customers, even though the building is so beautiful--matching the intended customer to the neighborhood class might be some good "Food for thought".It sure is nice looking building.Good Luck! 

Again, not a tax professional and you definitely want to talk to one to confirm, but this is just information I'm recalling from a CE class taken a while back.Also, I believe the $1 million threshold on the mortgage interest deduction was reduced to $750k back in 2018, if the subject property for the mortgage the deduction is based off was acquired after Jan 1, 2018.

Remote workforces and e-commerce trends have significantly impacted retail and office asset classes; however, the multifamily asset class has seen relatively little disruption.

Does sound a bit too good to be true... mind if I ask location and asset class? 

This doesn't sound like a class A or B area at that price hence you're playing the cash flow card and not the appreciation play so ensure the cash flow is worth it. 

The LP structure is much conducive to General partner waterfalls and varying classes of investors with different returns. 

You don't need to pay for mentorship or for some class, you need to work both sides at the same time via relationship-building.