Our accountant noted that our STR/LTR income was high in relation to our deductible expenses (and W2 income, on top of that) so he told us to consider having an LLC owned by us as the managing business, paying the Self Employment Income and contributing to a SEP IRA. 

Since it was not on the market too long but the rents are pretty strong in the area we went close to a full list offer at $97,000 with 2% seller contribution while using Hard Money.

Although did that experience growing up contribute to your drive to succeed in real estate?

Say family 1 and family 2 both contribute $1 million to a partnership.

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.

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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.