This is complicated by the fact most will want to know your cost basis in the property and won't want to cash you out completely, again because they view it as riskier. 

This setup is going to get complicated pretty quickly.

As in - if you want to take an aggressive position and are not afraid to defend it in case you're audited, then...Here is one possible answer, out of many that could come out of a thorough analysis.the apartments can be considered in service since Oct 2018, so you can probably deduct your entire mortgage interest and your entire holding costs such as taxes and insurancerehab costs should be allocated to the different parts of the property as much as possibleonce each respective part of the property is ready to be placed in service, its portion of the rehab kicks insome pieces of that partial rehab, like appliances and carpets, could be immediately deductedother parts (which is possibly most of the rehab) will have to be slowly depreciated over 27.5 years for the residential units and 39 yours for the shopsonly some work specific to the apartments might qualify as repairs, and it has be evaluated by a tax proYes, it's complicated.

This gets pretty complicated as we were blanketing properties under a portfolio loan and using LOC for renovations...and re-financed this one after we pulled $30k from a HELOC then moved and rented it at $1,200.

This gets pretty complicated as we were blanketing properties under a portfolio loan and using LOC for renovations...and re-financed this one after we pulled $30k from a HELOC then moved and rented it at $1,200/mo.

So how would the distribution get complicated in a s-Corp?

This seems like an unecessarily complicated route, and while I was really looking forward to this refinance being done, I'm inclined to just walk away...I really appreciate any feedback you all have. 

It's basically overly complicated coupon cutting, which also works.

i will continue to pray someone answers this question. because you nailed it. ive been looking for this answer for sometime. alot of these concepts are simple to others but so complicated to some of us. i cant stress enough how these savvy people we look to have the heart of a teacher. i see alot of belittling and "slick dissing" on answers. they are the minority but there out there. remember.. you started not knowing anything either. hope we get our answer or if you do reply. need the lesson. 

If you want to be that complicated I think that you should definitely sit down with an attorney.You can hold properties as joint ventures where LLC 1 and LLC 2 can have both names on title.