If it helps, I’m 25 and my ultimate real estate objective is to generate a medium class salary equivalent through cash flow by age 32.

I would call it a B-class rental, for the area it's in.I don't think the tenants will object to this increase, but I have been considering offering some improvements to help "offset" the increase. 

I'm assuming this is not a new or unique situation...would guess that someone here has crossed this bridge before.

These can be summarised as follows:What are the objectives of the joint venture?

I know this is a bit unique as its not a full cash out and I am having to do a loan regardless.

So I’m looking to get started in real estate with the objective of gaining passive income.

While a member-managed LLC might be feasible with 3-4 members that know each other very well and have identical objectives; when larger groups are involved, it rarely happens.

One of the recurring objections however is taxes, my investors don't want to incur the capital gains taxes.  

Rental arbitrage uses something called asymmetric risk reward because you're not leveraged.All personal notions aside I'm just curious what your objective response is to these questions. 

I recently read a description of wholesaling to him, and he immediately had objections.