If you plan to use a conforming loan, we've used Armando Barbosa of Vision Mortgage on our personal home and a couple investment properties.  

The former is a legal entity, and the latter is a choice of tax treatment.

I recently just bought my first MFH in Cleveland Ohio and have a vision to buy many more and hopefully own hundreds of units some day.

The Pareto principle gets skewed I think when trying to help or 'mentor' those that have demonstrated nothing but poor money management skills and a vision of easy riches.

However, there are so many other things that can be evaluated if you need a different treatment. 

@Tait DuryeaIt's not really a loophole....A loophole is an unintended tax benefit created by oversight or omission.The RE professional treatment regarding passive losses is an intended, explicitly codified benefit designed to provide relief from the passive activity loss rules to those that are genuinely involved in real estate as a trade or business.Regarding documentation. 

Daren D Wagner if you are registering as a multi member LLC, be aware that the default treatment for tax purposes is a partnership.

I had read @Logan Allec's post in this thread regarding different tax treatments in various use scenarios, but I think I made some bad assumptions about which things carry over from one scenario to the next.  

With ObamaCare, we'll not only kill unborn babies, because the socialists don't want to pay for them or deal with their IDIOT PARENTS, but we'll also let the elderly die when they become ill if their treatment is too expensive!

But it does sound like they are trying to rip one, but if this is a community sewage treatment facility (several types) cost sounds about right in line as in this area.