Use your Net operating Income to pay back the Private loan.  

It  may be invalid due to age, it may have been paid and never released, or may be gone by operation of law via the tax sale.

If so and if you want to take a salary, it will need to fall under the real-estate operating company requirement in order to use your retirement funds without paying taxes. 

I understand that the first couple of years would be tough but once I start to add in the apartments that get renovated and then store fronts my monthly income jumps to $8,875.So when I do the math with this number $8,875 monthly income with a 5% vacancy rate and 30% operation expenses + my mortgage ($1,400) for the construction loan my cash flow total is $4,502 a month which I split with my investor. 

Are you talking about pre-tax profit earned through investments or pre-tax profit earned through operations?

Most investors who buy turnkey properties are looking at how the property cash flows and what their cash on cash return is, if they pay cash (total annual income/purchase price) and/or the Cap rate (Net Operating Income/market value).

Practicing my number crunching, perhaps this will help:Purchase price: $120,000Cash in: $34,000Gross Rental Income: $1600/mo   $19,200/yrExpenses yearly (percentages off income):Vacancy @8%                 $1,536 Maintenance @5%             $960Management @8%         $1,536Mortgage,Tax,Ins           $9,600Total Exp                       $13,632 Cash Flow                            $5,568Net Operating Income = $19,200 - $13,632 + MortgageCash-on-Cash Return = Pre-Tax Cash Flow / $34,000Didn't know the specifics on some of those.

Real estate in a trust account is not a good idea because of the management requirements of the Trust Company, it needs to be appraised annually and operational accounting is going to chew up cash reducing your ROI and cash flow.

Dreams and starry eyes.You will find many even on this forum that still lack the discipline and knowledge to operate a business.Also although many are comfortable in the belief that real estate investing is low risk bankruptcies occur every day from bad choices or bad luck.

You should ensure that they are not only operational, but in today's energy efficient world know how antiquated they are compared to other newer'ish buildings, and what the cost is to upgrade or replace these systems.