He is also not well equipped to calculate your taxes, as evidenced from your incorrect understanding of how depreciation recapture plays into it.It is definitely possible that you can have very significant tax savings by spreading the capital gains and pushing them into 0% bracket.

I know they're building the factory in Patterson but this has the looks of deception, should show pics of actual equipment being installed AT the Patterson factory. 

When you do the walk through of the house (assuming you can get access), looking at equipment in the house should be done every time.

In Redding, CA the drug addicts shooting up heroin in the parks was so bad rather than arrest them, they removed the playground equipment, and the public libraries in many towns are overrun with sexual predators using the computers.

Maybe after you get the hand of your first rental along with your PM -if you choose to go that route- then you'll be well equipped to handle your next one.

To smooth things over I bought his kids day passes to a place in town that has trampolines and all kinds of gymnastic equipment. 

We are open to financing the operations but are not equipped or inclined to actually run the operation.

You may be “legally” right if your agreement was as per the first scenario above, but still, you Suck as a transparent partner.At a minimum, there should have been an agreement/understanding of what constituted “cost” as far as your overhead, payroll, insurance, equipment, etc.

One of the value add ideas I am tossing around in my head is Vending Machine's and or an ATM being placed in the property. 

I know it isn't real estate but curious if anyone owns any vending machines.