I'd avoid sophisticated/complicated and expensive structures at this stage, especially if the only reason you need a partner is because you're both undercapitalized. 

I know that all who invested gets paid if the deal does well, but it got complicated because I don't have money to contribute.

This whole deal is really complicated. 

To complicate things further it’s hard to put a price tag on many of these repairs, whenever there is long term water intrusion you run the risk of “mission creep” i.e. replacing some rotten siding leads to replacing some rotten sheathing leads to realizing the studs are also rotten leads to realizing the foundation looks crappy too now you’re rebuilding everything.

. :) Usually, the software does this pretty well with all these complications, and when you have to lay it out like this, it gets very technical.

You are making something simple complicated.

Any other techniques out there to "force" tax losses?

It got really complicated. the other $1000 in damages was from a busted faucet on my washer connection, totally separate and totally sucks!

One thing that’s obvious when it comes to real estate is it takes money. Property, and the buildings upon them, don’t come cheap. To get into the real estate game, you’ve got to have investment capital. Since most of ...

It's not really that complicated to buy out of state.