If you find out that they just need some cash to move away and would love monthly cash flow, then subject to may be a great idea. 

Subject to inspections.  

This is the first year we distributed K1s and had a hard time explaining all of the benefits. 

Hoping to get some feedback.Owner is an older gentleman who has moved out of the subject property and is now living elsewhere.

My file was handed to another accountant and she is saying that I will not qualify because my full-time job does not count toward the hours needed by the IRS since I have no ownership.Since I am getting conflicting information, I read everything I could find on the subject online, and have to admit I am still a little confused.

If i wanted to make an owner distribution would the flow of money be as follows:1.

In general contributions into and distributions out of an LLC are not taxable events. 

Purchase price: $58,000 Cash invested: $1,771 Took over the property subject to existing mortgage.

It's a way of saying "people in the market are willing to get 4% return on net income in an A area in this market, so if I know the net income of the 6 unit subject property, I can derive what someone would be willing to pay i.e. what it might be worth".Incidentally, when people talk about the "income approach" as one of the three appraisal methods (the others being sales comparables and replacement cost), it's usually introduced for exactly this scenario - that there are usually plenty of comps for 1-4 families and buyers are more likely to look at recent sales of similar properties to determine what they'll be willing to pay, but once you start looking at 5+ units there are both far fewer comps and the buyers are investors who really are looking at cash flow more than similar property sales.Anyway, I hope this helps.

Make sure you treats those as distributions to shareholders/members and don't run personal expenses through those bank accounts.