Partnerships can be a lot of work.

Moving it into an LLC later may trigger a “due-on-sale” clause unless handled carefully.Bottom line: With just one rental, it’s often simpler and cheaper to keep it in your name, get solid insurance, and revisit forming an LLC once you scale.

It takes 3-5 days to filter through the system, but we don't really have trouble with trigger leads now.

While I’m still learning about distressed assets, I am interested in connecting with experienced members who have navigated these investments or partnered on deals.I’m especially curious about:Strategies for sourcing and evaluating loans coming due before maturityInsights into distressed commercial properties and how partnerships typically workBest practices when considering pre-foreclosure properties and their risksI’m eager to learn and potentially form partnerships to approach these complex asset classes wisely.

You 'potentially' created an issue depending on how you are reporting it for tax purposes.How were you reporting this activity with a 'partner'.Was this done through a partnership return?

What triggered that decision?

@Ibrahim Mawri I've not worked on car washes specifically but have been a part of ground up builds or conversions, and in general its all going to be site and local dependent.You don't want to just get an understanding of the zoning, but also to your point any new, or changed regulations triggered by the repurpose. 

It's a gift because you dont want to trigger capital gains??

Quote from @Daniel Zieno: Hello BP friends, I am forming a partnership with five other members and we are pooling capital, and plan to go into some buy and holds and grow a company.

However, the extent of these deductions largely depends on how the LLC is taxed—whether as a sole proprietorship (reported on Schedule C), a partnership, or an S corporation.