You would need to hold the property for some period, probably a year plus.If you're planing to just turn around and sell this quickly, its either short term capital gains or ordinary income.

They don't even have to make a contribution to any capital account or execute any obligation, nor do all memebrs have voting rights.

also, you would have to pay capital gains tax on that too correct?

My friends brought me into the loop because they did not have sufficient equity capital to complete transaction.

Does this include deferred maintenance and reserves for capital improvements (new roof in 10 years, HVAC replacements, etc)?

What is accounting for the lower capitalization rates?

An owner has numerous other expenses like maintenance and capital improvements that come into play.

Our unemployment rate is also 1.1% below the US average, and we our the horse capital of the world

You may have set backs but if you lose all your capital you will be back at square one in a hurry and nothing to show for all the sweating except an expensive education.

I am the founder and manager of Aria Commercial Capital LLC.