A very narrow exception applies to a partnership that has elected, underSection 761(a), not to be subject to the partnership taxation provisions of Subchapter K.The election applies only to a partnership: (i) for investment purposes only and not forthe active conduct of business; (ii) where the partners hold title to the property as coowners;(iii) where each owner reserves the right to separately take or dispose of his orher share of the property; and (iv) which has no active trade or business.

With the development of a new internationally acclaimed hospital, world renowned golf courses and hotels such as Montage, Ritz Carlton Reserve and The Thompson; Cabo San Lucas is attracting more interest than it's had in a long time.  

Why they have a "fiduciary duty" to maintain, budget and plan for the maintenance and replacement of items throughout the community does Not mean they are funding the reserves properly.The amount of COA/HOA fees you will pay will be determined by the community size, amount and type of amenities, current budget, percentage funding the reserves. 

Do you have a separate bank account for each owner that you manage for where a reserve is kept?  

maybe at 250k in 10yrs or stay the sameAnd if I purchase this place my cash reserves would only be 5K max (and then I would be spreading that across 5 units)What are you thoughts, understanding I will need to do more of a due diligence to confirm this is truly a good deal. 

You didn't mention what your cash reserves are but I wouldn't recommend buying investment property until you have some reasonable cash reserves in the bank to handle any repairs that may be needed at purchase and basic maintenance over time.It also looks like you are based on Southern Cal as I am and it's important to note that the market is extremely tight right now and to buy right you have to pay all cash or at least have a substantial down payment.  

As an accredited investor, I've invested with the crowdfunding guys but always held a big reservation in the back of my mind and couldn't quite put my finger on it, even though I felt like I fully understood the risk.  

This frees up a significant portion of my cash reserves that I can now put towards investments.

I'll transfer them to LLC once I have enough reserves to pay off notes if due on sale ever occurs.  

How many evictions have you gone through and do you have the reserves to wait it out with no rental income while you have to keep paying the mortgage, property tax, insurance and all other operating costs, plus the lawyer and court costs?