I have  friends and family willing to invest $100,000 each in private funding for me to buy rental cash-flow properties however I don't know how to set up the money transaction in a way that pleases Uncle Sam. 

@John GuintaHave to agree with @Sam Shueh.

just did my 2018 taxes and I have to pay uncle sam this year about $3300. when I ask if I should buy rental properties I was told because my wife and I make to much that most of the rental income would be a wash.so let's say I buy a sfh at 100krent it for $1000/monthclear $200/month $2400/yearjust using the example my CPA used. not real numbersif I don't have at least $2400 in deductions that $2400 net income would just be taxed away in my w2 income?

The burden of proof is on you to show that the LLC operates separately from you, otherwise it's status as an LLC is at risk and you have an angry uncle Sam after you.

It is good old fashion american capitalism.

@Sam SchrimsherWelcome to Bigger Pockets!

At this time the American economy is very unstable.

@Sam Cook what is the best return on your time and money.

And, here's why:The median net worth of an American homeowner is $231,400, according to the Federal Reserve.

I'm not a fan of "room rentals" for a host of what can and will most definitely go wrong but here's a fact you should know: The median net worth of an American homeowner is $231,400, according to the Federal Reserve.