I'm young and hardly know anything about taxes in real estate.

Also if I were to prepay the entire term of the lease at once, could I apply that to the single years taxes, or does it need to be taken over the course of the whole lease (3 years)? 

I believe the state where the LLC/LLP is organized will want a share of income tax on those properties by default and you will have to demonstrate (through more forms) why they should not if the properties are in another state.  

hi Noe,Thanks for replying as of right now they have 16 units rented and they are gonna finish the renovation in a month or so what they tell me is they will have 85% of the units rented with in that time frame they dont have a management company in place and i would have to get one  taxes are 15k and insurance is 12k  that is all i have on the numbers at the moment.

Call up realtors for investors, check Craigslist, tax sales, meetups and talk to people and look for investors.5.

@Jonathan JohnsonAsk for a copy of the trailing 12 numbers for the building.  2015 P&L and Tax Return if they will give.Find out about property taxes and insurance.  

Yes that equity would be great, but you would be missing out on most of the tax advantages that comes with the higher leverage.

With taxes, HOA's and insurance your bills would come to about $200/month.

When you have decided on yout for sure niche  you could get an attorney (tax accountant) or a CPA to help you with your business type.  

Ann arbor is too expensive and Ypsilanti taxes are high.