Once you have your community planned out in that way you generally work with a Community Management company who will take all the amenities and services you plan to offer and put together an annual budget based on the costs of operating such a community (not the cost of the construction of the amenities, that is part of the development), the reserve requirements, etc. and they determine an annual fee per lot/home.You would also work with them to determine any initial capital contributions per buyer at the time of closing. 

I have family down there and have heard a lot of good things.Anyway, look forward to connecting and hopefully contributing to the forum.

If you want to write for us about multifamily investing, fill out the form at www.biggerpockets.com/contribute

Pretty hard to get to $1 mil on those contributions, even if a couple each contributes those amounts.

Please see additional considerations below.If you are eligible to set up a self-employed Solo 401k (or have a 401k plan through an employer which accepts rollover contributions and allows for 401k participant loans), another alternative which would avoid taxes and penalties would be to transfer your funds to such a 401k plan and then take a 401k participant loan.

I'm sure you were just using the term loosely Holly, and you meant it in general that you are able to 'shelter' the income you make from the properties through depreciation, etc.Of recent, syndication of conservation easement transactions that purport to give investors the opportunity to obtain charitable contribution deductions in amounts that significantly exceed the amount invested, are considered tax shelters.Great points, just wanted to clarify that one.

You can always Contribute Property to an entity without any tax consequences.

(Work [can be REI or your 9-5], Relationship, Spirituality, and Generativity [Legacy or Contribution to others or community])Why are you doing this? 

I only request the budget when downpayment is 5% because Fannie and Freddie require a full condo quest where it shows if the HOA contributes 10% towards their reserves, it is only on 10% downpayment and up that only a limited review condo quest is required and the reserve question is not listed there

Thanks everyone for contributing!