Tax & Legal ConsiderationsDepreciation Recapture & Capital Gains: Since both properties have been held 20+ years, any cash-out won’t trigger capital gains, but if you sell, consider tax implications.LLC / Holding Structure: If you plan to scale, consider holding new properties under an LLC for liability protection.5.

I invested with them based upon the fact that they said they would be breaking ground in 4th quarter this year, they held a shareholder's meeting and said the funding fell through and every time we try to get answers from them there is never any specific dates or specific details.  

The tax money would be held totally separate in a HYSA. 

It is to be held for damages or unpaid bills after the tenant moves out.

However, commercial properties (multi-family included) are often held to higher standards. 

As for the leases, waiting until January 1st can make bookkeeping and tax reporting cleaner since you’re starting fresh for the new year, but transitioning now is fine too, you need to track the date carefully for tax purposes.The mortgages are still personally held unless already in the LLC’s name.

The sponsor had a great track record prior to that, and held in very high regard in the community. 

From a tax perspective, here’s how I’d look at it:If you flip it right away, you’ll likely face short-term capital gains if held less than a year, taxed at your ordinary income rate, which can be pretty steep.

have held off due to current... volatility?

I was made aware this weekend by one of the investors on our Facebook group that Marco Santarelli on June 18th, 2024, held a "web seminar" again soliciting investors.