I spoke with the lender we used for our home mortgage, and he recommended against it, but I feel it is because he does not offer loans to LLC's and is obviously trying to keep my business.

Credit union is offering 6.5% mortgage loan for multifamily property. 

I was bidding on a 1st mortgage.

@Jarrod WillisSometimes the borrower files bankruptcy right before the auction, or they may have not done a proper notification.

Think of it like the escrows you likely pay your mortgage servicer for Insurance and Taxes, or your estimated taxes to IRS.  

Talk to your parents, or another trusted relative, about co-signing a mortgage with you.

When deciding whether to sell the rental property or buy out your partners, consider factors such as the current market value of the property, any outstanding mortgage or debts on the property, the potential for appreciation in the future, and the rental income generated by the property.Calculate the amount you would need to buy out your partners and compare it to the potential profit you could make by selling the property.

But you can still treat it as resulting in Ordinary Income even though it is reported on Schedule E, which lets you properly report in accordance with the tax results it seems you are shooting for under the tax return loophole.If your CPA is looking at switching it between schedules to get that tax result...it sounds like they don't understand the reporting position fully and/or they just don't know how to use their own software to address it.In summary, based on what you are describing for the situation, it should go on Schedule E, with what sounds like the resulting refund of $17k.

So long as you mean your name will be on the note and the mortgage at a sensible LTV, with proper lenders title, fire, and liability insurance, and so on, then you have safe and direct recourse to the property.If by “invest” you mean a membership participation in an LLC of some sort that flips or “stabilizes” the property, then you are completely unsecured with no recourse to anything.

Mortgage and cash What was the outcome?