115k is not that much in liquid cash as I grow more and will need reserves.

I think it is important to manage your own units for a little while to learn what managers do, and ultimately how to manage them, but it is a very low payoff activity and I think should be delegated fairly quickly if you want to grow. 

You will go on being happy, cash flowing, growing wealth for your family.

So, now you have rental income that you are taxed at your ordinary rate, and passive deductions with no rental income to offset (other than your other unit that is rented).This is one of the reasons why its not advisable to own a property under a LLC that you live in.Consult a qualified professional. 

But long term if they want to grow, beyond just wealthy/wealthier investors, they'd probably want to support more than 1/8 share ownership.With the current model and pricing, it doesn't make sense to me to make that kind of investment unless I had excess money to spend.

We have continued to grow in the last 7 years with our Storage business. 

Finally he offered to loan me 200,000 in order to help me grow and make money at the same time.

Finally he offered to loan me 200,000 in order to help me grow and make money at the same time.

At this point you can't offset passive real estate losses with other types of income(ordinary / portfolio).However, she likely is not paying tax on her real estate cash-flow which makes real estate a better alternative to stocks / bonds from an after-tax perspective.

You get to come in to a business that's running and already profitable and concentrate on growing it.Buying opportunities are everywhere right now as business-owning baby boomers are hitting retirement age in droves.