@Brandon Crumpton - Great question and @John Thedford summed it up nicely.Yes, it's a double edged sword that enables you to take massive leaps forward and risks or can be utilized to the point where you overextend yourself and then being unable to sleep well at nights.Use leverage wisely and you will benefit from it's advantages positively.

If this is too vague I can try and go into more detail but just getting a rough idea if its been tried or if it’s even worth it for the tax benefits?

How do I benefit? 

Adding to, would I be able to receive tax benefits through real estate without having an LLC? 

My guess is paper losses were significant because the GP did cost seg to solely benefit themselves and the middlemen - most LPs are busy professionals, not real estate professionals, hence cost seg doesn’t benefit them but their money is nevertheless used by the GP for GP’s tax benefit.

@Kathy Henley you have a good point. the benefit I see is that I don't have to pay the interest cost and point etc. and on the slim margin that makes a difference for me.

Agree with Sam's points, but also communities with easy access to I40 on the North East side of Memphis could benefit as well.

I say this as much for other peoples benefit reading along, as for you.

The benefit now may seem nice of getting that money, what could you do in the next 6 months to year that will increase your income for a life time and have higher returns, and the ability to grow massively instead of singlehandedly focused on something that would lose you money now and later down the road. 

Also, timing those improvements can be very advantageous to you for tax benefits and additional cash-flow.