The idea of votes based on taxes paid makes eminent sense if you consider that it is based on the common sense principle that taxation and representation should be aligned with each other.

Remember, you can sell your rental any time you want (at least list it) in hopes to sell it for the same or more...If your Single Family Rental investment happens to appreciate over time, not only do you get to cash in on the equity that the tenant paid (mortgage), cash in on the monthly cash flow (balance left over from mortgage) BUT you collect the extra $ from the appreciation of the sale....Buy it for $50,000.... 5 years later property is worth $65,000... that extra $15k goes right in to your pocket... along with what you collected monthly and the principle reduction the tenant gladly paid for you!

@Marcus JohnsonI am NOT here to give you a financial plan but I will say that you have a lot to learn.I agree that partnership are NOT the most advantageous form of a business but this principle applies even if we incorporate.

I agree with Will Barnard in principle (as I'm pretty sure he is smarter than I), but will disagree a bit in practice.

What is the basic principle that these rules demand?

With a $1,000 deposit (so holding a note for $19,000), the monthly mortgage payment would be just below $300 per month (including principle, interest, taxes, and insurance).

As a principle of Fortress Investments, I have to say we do deliver turn-key, cash flow, residential properties with tenants in place for only $7,500 total out of pocket.

But without a principle reduction, people who are underwater won't be able to refi.Sorry, but I just do not accept that people who bought houses they cannot afford, or could only afford based on a teaser rate, or bought with liar loans betting on raises or appreciation to come should somehow be allowed to have part of their debt discarded and allowed to stay in those houses.

This is about the principle of taking K-1 syndication losses.

"The Peebles Principles" by Donahue Peebles, not exactly a how to book but very interesting and informative.