The seller had inherited the property, it had been vacant for 5+ years & they hadn't paid the property taxes in several years as well.How did you finance this deal?

Obviously, non of this is legal or financial advice just for discussion on an online forum you should consult your own legal and tax professional.   

I think I remember Tom Wheelwright saying never put a tax shelter investment inside another a tax shelter.Thanks for your input.

Unfortunately, property taxes and HOA fees have also risen, while rental rates for the property have not kept up.

I am currently looking for a CPA to help me with tax planning for the future and tax perpetration for the year. 

Get tax benefits and future cashflow.

Partnering between two people both with no or limited experience; both with no or limited capital, or because they’re “good friends” and want an adventure together, will ultimately result not only in the failure of the partnership, but often in long term bitter feeling of blame and hostility between the ex partners.The partnerships that are successfully, both financially and socially, have most of these characteristics1- the  parties bring complimentary attributes to the partnership2- the parties are of a like mind concerning ethics3- the parties view risk - return the same way4- the parties goals are aligned5- the parties RESPECT one another 6- the parties are willing to defer to the other partner in that partner’s area of expertise7- neither party is under undo financial pressure8- each partner’s “significant other” is supportive of the partnership9- the partners have an agreed plan in case of death or incapacity of one partner10 - the partners have a legal, executed buyout plan in case one or both parties want to terminate the partnershipIf you’re considering going into a real estate, or any business partnership, you may want to consider the above and take a hard look at the chances of success.  

Here is what I have learned-Microsoft has announced plans to put 6 data centers in East Wenatchee making them the single largest investor and tax payer in Douglas County.

Way more multifamily units (not even counting another 675,000 single family units under construction) than new household formations coming for 2024.Operating expenses, including taxes, insurance, maintenance, etc. are skyrocketing, and likely not all fully absorbed in the average property.And, alternatives that produce more cash flow than a 5% cap rate (average for prime multifamily real estate currently) with less work and less risk, like private lending, short-term treasuries, money market accounts, etc. 

There is a lot more documentation involved though, as lenders will want to see 2 Years of tax returns, rent roll, property expenses, leases, and a credit above 680.