**Tax and Term-Free Loans**Are you leveraging the advantage of tax-free loans against your policy’s cash value, with the added benefit of no mandatory repayment terms?

Especially now that you've posted your suspicions on a public forum, I'm not an attorney, but I've watched enough Law and Order that I could see there being the possibility of you being charged for "Aiding and Abetting" their crime by not reporting it or "Criminal Facilitation". 

Yes, the right way as not to be taxed more on your property value.And do you need a bank account dedicated to the LLC?

Location: Chesapeake, VA (large military town) Market Value: $360,000Loan Balance: $245,000Equity/Second position note: $115,000 (30 30-year amortization / 10-year Balloon Payment, 6.5% Interest, $727 monthly payment) - Bringing cash for this would save a ton of money for the buyer.Rate: 2.25%Years Left: 26Current Monthly payment: $1,300 (including taxes/insurance)Current Rent: $2,000Scenario 1: -If you were to purchase with a new VA loan at 7% interest at market value your monthly PITI would be approx.: $2,757-If you were to assume the loan and I carried the second note at the above terms your monthly PITI would be: $2,027Saving: $8,760 per year.Scenario 2:-If you were to bring the same $115,000 as a down payment on a conventional loan you would pay: $1,992-If you were to assume the loan and bring cash for equity position your monthly PITI would be: $1,300Saving: $8,304 (with no need to refi in the future)Since this is a hypothetical situation I'm going to give my number based on nat. average homeownership of 13.2 years.

Attorneys may be versed in real estate law, but that only helps you a teeny tiny bit in the grand scheme of things.

If you are interested in moving your entire portfolio, would you peel off (tax purposes) or dump everything?  

But considering all the expenses (PM, leasing fees, cap reserve, maintenance, taxes, etc), it has been showing as negative cash flow. 

There are only 2 blocks on West Pomona Street and the two blocks total 90 tax parcels.

The $100,000 cost of the original structure in 2021 would not be depreciated further because it was demolished.So, for tax purposes, you would only depreciate the cost associated with the new construction, not the original structure that was demolished.

You should familiarize yourself with your state laws on that.