HiI am having a hard time understanding how one should pay himself within a family partnership (LLLP).i have limited understanding in taxation*My accountant advised we have a salary paid by the entity, essentially making us employees.i read that there are some caveats to that, is there an alternative/conventional way to set-up recurring compensation?

I am having a hard time understanding how one should pay himself within a family partnership (LLLP).i have limited understanding in taxation*My accountant advised we have a salary paid by the entity, essentially making us employees.i read that there are some caveats to that, is there an alternative/conventional way to set-up recurring compensation?

The commercial LOC is essentially borrowing cash at a certain interest rate.

@Vlad Denisov, Cap Rates are essentially "the market" when it comes to commercial real estate.

While it can be an investment if it appreciates that is not guaranteed, so you essentially have an automatic savings plan as you pay down the debt and hope the house doesn’t decrease in value.

(One reason you don't see lawsuits on issues like this is members of the NAR have essentially agreed not to sue each other and to instead use arbitration and keep matters like this out of the court system). 

If you convert it into essentially a big bedroom/apartment, it's going to be hard to sell.As far as your potential cashflow I ran the numbers through my pro forma and I'm coming up with $275.30/month in cashflow.

This would allow you to use this Line of Credit and essentially acquire more units with no to low capital.

With that said I use Rentometer but I have the paid pro version which I believe is $99 a year you can essentially narrow  down your results by certain distance from you property (radius) and  you can have it only share results in multi family and condos or you can have it showing results only for SFR’s and duplexes.  

You need to have your plan, multiple alternate versions of how your plan will still pay in the face of difficulty, and essentially that you know exactly what and how you are doing.