You've gotten some very solid advice from the BPer's here.To help you get your mind around the concept that you bring a lot of the value to the deal, I can tell you that if you were to stand up at your local REIA meeting during the "haves and wants" portion and announce you have money to loan, and your partner were to announce he had a rehab project lined up and was looking for funding, you'd be a lot more popular.

You allocated a portion of your purchase cost to the landscaping and depreciated that over 15 years, and the balance of cost you allocated to the dwelling structure was depreciated over 27.5 years.

The Woodlands on the norther portion of Houston is a very large Master Planned Community.

I assumed that as long as I was responsible for my portion ($875 in this case), the rule still applied to 4 units.

If you also have a portion of the equity of the LLC, then the LLC would file a partnership tax return and give K1's to both you and your parents.

In order to participate in a fractionalized note, each investor must meet certain qualifications and one of those qualifications is that the amount invested does not exceed a specific portion of net worth/income.My broker does qualify each investor and this is why I am compliant in all regards.

If I was able to move them to fixed it would remove a portion of risk from the equation.

If you aren't going to use the agent, but need their services for comps, etc. explain that and ask what they would charge for that portion of their services, etc.

I am trying to decide if my first investment property should also be my primary residence (Specifically, a multi family in NYC or NJ that I can rehab and rent a portion of.).

As to the land portion, adding that in may in fact make this a great deal.