Putting all this action into a partnership tax return reduces the risk right back down to an acceptable amount.Second, with a partnership tax return, we can mechanically show your capital contribution (at-risk money) including recourse loan debt.

Feel" the true beat of the portfolio's income and expenses performance before using leverage to speed up the growth of your portfolio.Using cash only will protect your bottom line in scenario's like yours when the properties don't perform as expected as you won't be on the hook to cover the mortgage expenses.Just my bias opinion so take it with a grain of salt.I've also witnessed many finger pointing instances when others get involved.Like a new property manager, realtor, contractor, etc...I've had my share of bad experiences with realtors that threw my company under the bus and got in the investors ear to flog it at any price just so they can make a quick commission.It get's very messy, painful and pretty much turns into a disaster with the investor not knowing who to trust or what to do anymore.Similar to what you post about has happened to me and my company many times and if allowed the opportunity, we do our best to fix and come good.Some loose trust and faith and I 100% understand, but as soon as someone leaves the wing of my company there is not much that we can do because as I mentioned above, everyone else get's involved, has an opinion and the situation get's very messy.Having in-house property management is vital when such a "crisis" arises.I tried out-sourced PM when we first started and it was a disaster.We had no choice other than to bring it in-house.Hated my life for the first 5 years with in-house PM and fast forward 10 years, it has become our "golden goose" and a very well streamlined and beautiful business.From what I've seen and read on the forum and elsewhere it seems like RTR has a good reputation and what you have mentioned seems like a "worst case scenario".I hope RTR will assist you the best they can and all I can say is learn from the experience and don't give up.Do your best to weather the storm and focus on minutia.Don't have regrets and don't spend too much time dwelling on the past.Glimpse into the past to get guidance from what you could have done better and think ahead.Move forward smarter, more experienced and better.Wishing you well and much success with your future endeavors.

What is a hard money loan?

or long enough you made the money back?

To me paying 1% extra on a loan for 3 years and saving some money on down payment not worth the risk.

Truth be told, the less money you put down, the higher the rate.

Tax sales are by no means "easy money" like many people think and I would never recommend a tax sale for a first timer for EXACTLY these reasons.

@Bruce Lynn, while I am guessing because I don't know "most" large multifamily, I would say it is very much manager dependent and likely to become more common place as many syndicators are struggling to make their mortgage payments.Ownership companies are still run by people, and people that don't have enough money to pay their bills will start prioritizing who to pay based on the perceived risks of not paying.As for taking over any outstanding bills, that is one of many issues of the common LLC transfer.  

But I’ll be clearing some more money by fall.

This is going to save you time and money.