@Tyler Barker I think its as simple as putting any money into real estate. i started calling myself an investor after i finished my first duplex and rented it out but during the process i kept alluding to saying it was like a hobby. my career as a whole is in real estate but the actual investment portion of it is only a percentage of my income but i do consider myself an investor because i put time and money into real estate whether its a buy and hold, flip, or partnership investment. when someone tells me theyre a real estate investor though, my mind automatically goes to landlord or flipper.

You will still have a taxable portion from depreciation taken over the last few years . 

They have a modification in place...the only thing due right now are the payments on the $240K portion -- the latter second is due in 15 yrs as a balloon...... they lender deferred that portion -- PITI on the 240K is $1650. so yes, right now total they owe 409 -- house, fixed up is worth 440 -- they are 25k in arrears  -- no go right? 

Same result either way: interest portion is deductible.

A large portion of our management portfolio is in low-income neighborhoods where you're not going to see any appreciation, but the potential for cash flow is phenomenal.

This will at least give you a rough idea what you're approved for but keep in mind that if some of the units are occupied they will be able to count a portion of that rent income to help you qualify for a larger loan, but also be aware that inherited tenants can also come with a bigger headache and cost you more money than a vacant unit so do your due diligence on that tenant as well.

After 20% down, rent covers interest payment, tax, HOA, plus some portion of principal payment...I still have to pay about $300/month in principal payment....

I sell some portion of the property to the LP instead?

The “capital raiser” in turn is offered a piece of the GP or LP which is totally negotiable and comes out of the sponsors equity not the LP equity.As long as they are straight forward, honest and upfront with you it should not affect you or your returns at all.If you prefer to be on the GP side and invest directly you will need to find a sponsor to invest with and bring a significant portion of the equity if not all of it.

The principal portion of your mtg payment is not deductible.