There are ways to mitigate this tax, by either using a double corporation strategy, discretionary irrevocable trust, or life insurance. 

Probably something simple I am missing or the deal just doesn't make sense.3 condos, the owner has 14 out possible 48 in this complex and if the deal goes through may lead to more deals with her.the condos are 1/1, 2/1 and 2/2, she is asking 76k for the 2 2/1s and 64k for the one bedroom. total 216k, she would hold a second position note for 30k with me putting down the remainder of the 20% down (13,200) and pay closing costs. she would like 6 payments, one each year of 5200 for 6 years which comes out to 31200 total, about 1.5% interest rate if my calculations are correct.For simplicity, I am counting the 3 as a triplex, so rental income is 2325/month, tenants pay for electric and gas, HOA of 185(555) per pays for water, sewer and garbage as well as exterior and common area maintenance, snow removal, grass cutting, etc. taxes are 266 and insurance is 50 month (HO-6) policy which I hadn't heard of before.

Familiarity with the process, vendors and their functions, documents, local laws and REI terms by going through the process would be beneficial. 

Prop insurance is more expensive 4.

Does the agreement to assign contracts need to be notorized in order to be a binding legal document?

Having left the Rat Race this year after 15 Years of Buy and Hold Investing I find it is time to reflect, document and give back. 

@Patrick Daly If this is your first syndication, you have to prep up in advance in terms of investors conversations, legal structure, assembling your team: securities attorney, CPA, lender, insurance broker, etc...

I would also say, you might not even need LLC if you have a good insurance.

They manage my former primary residence for me and usually are very responsive, I can talk to the owner any time, and they have good control of the statements, payments, insurance, etc.http://www.hrgaustin.com/property-management/Hope this helps!

Every way I work the numbers, it comes out smelling like roses, anywhere between $1600 to $2400 monthly cash-flow, depending on unknowns like maintenance, taxes, insurance, and assumed-knowns like property management and capital reserves.Now, here in California, $350K will hardly buy a 2 br SFR, nevermind an apartment.