If you are found negligent and get  $1M judgement against you they can levy all 20 properties in that LLC to get the money. 

@Richard AndradeWhat you are looking at doing is a Debt-financed Distribution(DFD in tax terminology).Determining whether the interest would be deductible may depend on what the loan proceeds are used to purchase.Therefore, each investor should trace what the $800,000 will be used for.

@Ellen AlvarezTax breaks are good but you have to realize that you are getting a tax break because you paid out of pocket for an expense.You also want to see if the item you are paying out of pocket for is a repair or an improvement.Repairs are currently expensed while improvements are capitalized and depreciated over its useful life unless there is an election/exemption.With that said - it is good for you to make a repair to a property, get the tax deduction and simultaneously see the value of the property go up.

Will it be 12.5 x some value = deduction for this year ?

Deduct the cost to convert to this use...

@Levi Cox Welcome to BiggerPockets. 

Then I ask if will sell me the property at a 10 cap after I deduct these other expenses.

Thank you.I did a quick calculation of what my annual net cash-flow would be for a 2-bed condo and it turns out that it is only +$100 after deducting all the expenses including property management costs.

Raise your deductible from $500 to $2,000 or more.  

It's a 2B1B and I will be living in one bedroom while renting out the other.To my knowledge, I can't deduct expenses related to my personal bedroom.