my questions are:1) do i have a choice which property's proceed that excess belongs to, in order to have the minimum capital gain/depreciation recapture? 

Or, if the cash flow is only enough to service the loan, you friend would be getting all of the excess cash flow and you'd be getting nothing.

At times its just to park excess cash.

Life style, leveraged assets and borrowing for depreciating assets, excess vehicles, toys and other financed properties says more about someone than how they speak, act or dress.Liabilities are viewed as obligations and contingent liabilities or debts they might incur if plans change.

And best of all, clients can change their IPF allocations as their needs change, so they are never locked in"Wealthy people have bought permanent life insurance for over 150 years for many reasons.Here are 12:The perfect retirement plan - 12 features1.The plan should allow for tax-deferred growth2.The plan should provide for income tax free withdrawls3.The plan should earn competitive returns as much as possible but still have guarantees.4.The plan should allow any taxpayer to put in as much money as they want.5.The plan should provide a taxpayer to use the account as a collateral for a loan.6.The plan should protect against market losses.7.The plan should assure access to loans should the taxpayer need money before age 59 1/2. 8.The plan should allow for these loans to be paid at the taxpayers discretion, at any rate of repayment or even not paying them back at all.9.The plan should be protected from creditors.10.The plan should eliminate early withdrawal penalties, late withdrawal penalties, and excess contribution penalties —- there just shouldn’t be any penalties at all.11.The government should continue the contributions to the plan at the same level the taxpayer was contributing if the taxpayers should become disabled and cannot continue to put money into the plan.12.The government should accelerate the expected retirement account balance to the taxpayers family if the taxpayer dies prior to retirementIf you compare these characteristics of an ideal plan and compare it with a Roth IRA, you can’t do number four, put in as much money as you wantyou can’t do number five, use it as collateral for a loanyou get to number six, protect from market losses (see rider above)you can’t do number seven, assure access to loans before 59 1/2you can’t do number eight, allow for loans to be paid at the taxpayers discretion or not at allyou can’t do number nine, be protected from creditorsyou can’t do number 10, eliminate early withdrawal penalties, late withdrawal penalties, and excess contribution penaltiesyou can’t do number 11, making the government continue the contributions to plan at the same level the taxpayer was contributing if the taxpayers should become disabled and cannot continue to put money into the planlastly, you cannot do number 12, the government should accelerate the expected retirement account balance to the taxpayers family if the taxpayer dies prior to retirementPermanent life insurance is much better than a Roth IRA for these reasons.

If you're giving them security in the form of ownership then they could only take title to the excess $200K. 

That fee is excessive. 

And up to 25000 passive losses if you actually do have losses in excess of rent which for me in the South in my low mortgages I can't possibly figure out anyway to on a tax basis be running at a loss.

Fortunately, we have it written in our lease that excessive water usage is the responsibility of the tenants.

But here are my two cents:The majority of gentrification seems to occur where two things exist: 1) An excess of deteriorated homes in a central location and 2) Availability / proximity of professional jobs located in central business districts.