Assuming 50/50 cash contribution and split of profits/losses. 

In addition, they were the only cities to experience zero job loss throughout the recession.  

I'm here to learn as much as possible about Flips, wholesaling and help others out of bad property situations with creative financing and lease to own options where Banks won't help.Darrell, You should pm me, as I am a USMC veteran, Marine Corps AIr WingI work in options leases, installment sales, private lending, joint venture partnering, slipping, subject to, wraparound mortgages land contractsI focus on expired listings were sellers have hard time selling for some reason, either the house needs repair or behind on payments,  or the sellers situation ie divorce, loss of job, probate, irs, etc

It's unfortunate that I have to do so, but fortunately the other unit pays the mortgage so there's no huge loss other than my time and rents that would have been received.This actually gets me thinking... since I believe I do have the right to evict, I should actually deposit the Assistance checks. 

The initial implications would seem to be significant, given the elimination of deductions, but the long-term effects might negate the initial loss due to the (potential) economic stimulation that it could induce.  

Net passive losses carried forward for this property are added to net passive loss for the year of the sale and are included in the net passive loss allowance and taken as an offset to W2 income on line 17 (1040) even if the suspended losses make the total passive loss exceed the $25K cap on the net passive loss allowance. 

I don't have physical evidence of the actual numbers but my educated guess is that it has a net loss of residents and jobs.It's not that far from Austin; go have a look.

While you do not incur taxes for accessing the funds, you will be replacing the borrowed money with after-tax funds, so there is a loss of tax-deferral on the basis that you borrow.

As a general rule:If your LLC is flipping properties, then S-corp is probably the better choice.If your LLC is a residential rental activity, then partnership is probably best.Both tax treatments pass the net income or net loss through the LLC to the individual members/partners.

Personally, I am not comfortable with having the stress in my life that in an instance another persons stupid mistake could result in the loss of my entire portfolio and potentially jail time if your courts hit the landlord hard enough.