Thanks for your response , I was thinking I could just pay the income tax (reimburse him) so I can continue to use the funds, as I increase my own capital and we both profit like you mentioned.Is there a certain type of IRA that will allow me to do this, or will I be paying income tax for EVERY withdrawal when I go to close on another property again and again ?  

You are only responsible for the interior contents which is what is known as a walls-in policy HO6. 

Great location and the home had a solid foundation plus proper square footage to add bathroom, office and mud room for updates.

@Nick Giulioni thanks for the response.

Makes sense @Stevo Sun, that brings a lot more clarity as to how people are doing it, thanks for the response

Added kitchen and heavy-duty door to split home, which allowed me to unofficially convert it to a duplex.

I'm in the Tahoe Reno NV area now and there are also solid single family that cash flow without the headaches of California tenant laws combined with low property taxes.

Good, stable tenants with solid property management. 

I’ve agreed to pay for holding costs and take responsibility for my work.

The NNN game can be great, but you do need to do heavy DD on the leases.