You will then report the information from the K-1 on your individual tax return.When you dispose of the partnership investment-the gain will be long-term if held for more than 1 year.If you have a loan agreement - you are lending money in exchange for interest.

@Brandon Bolinger  Another way to look at this would be to set the building up to be sold as individual units down the road. 

I typically deduct property insurance, property management fees etc off my individual personal income.

I have long listen to the bigger pockets podcast and have since decided it's my time do make the big jump to start here on the forum and interact with like minded individuals who are passionate in REI!

After reading several books (The Millionaire Real Estate Investor, Cash Flow Quadrant, Complete Guide to Buying and Selling Apartment Buildings, Rich Dad Poor Dad, etc.) and soaking up all the BP content I possible can, I would like to expand my portfolio into small multi-family (5-20 units). 

I am looking for the following individual contractors who are licensed and insured in MD (Preferably also in DC & VA) for REHAB to upcoming SFH projects.1.

Maybe a foreclosure or a place that was poorly managed .

I also do contract for deed, low closing costs but I strongly suggest you close a CFD at an attorneys office (gives feeling of official and legal,,, which it is).Have a written contract for performance, quartlerly inspections and penalties if no work or poor quality.The summary is:  these rarely work out. 

I grew up in a poor environment.

Rich Dad Poor dad is a good motivational, I really liked the One Thing and the Miracle Morning as well.