We have not ironed out any details yet but we will put together a joint venture agreement ahead of moving forward with any deals.

We got in touch with someone who shared an idea of buying the portfolio through a joint venture, with refinances to pay the seller off.

Quote from @Michael Wells: Hey everyone,My name’s Michael, and I’m an independent health insurance agent currently pivoting into real estate investing full-time.

Quote from @Matthew Hamilton: There isn’t really a “penalty” for having the property as a rental for three years, but you may lose eligibility for the federal capital gain exclusion if you hold it too long.Here’s how it works:The IRS allows you to exclude up to $250,000 of gain if single or $500,000 if married filing jointly when selling your primary residence, as long as you’ve owned and lived in it for at least two of the five years leading up to the sale.Since you moved out in March 2023, you’d still meet that “2 out of 5 years” rule if you sell by March 2026.

You’ll file one joint return, but S-corp expenses don’t get “added” on Schedule A, they must be deducted inside the S-corp and flow through on the K-1. 

For less active income (some would refer to as "passive income"), without a job, you're going to need to get a dscr loan but you'll also need to have a balance sheet to take the property down meaning you're probably going to need to partner.I would also try to see if you can improve your health issues before you start this new venture.

TIA My recommendation- Establish a Joint Venture that lays out each partner's contribution to the project. 

The family member has held the buildings for decades and managed on his own, but he is 80 years old with health declining and cannot properly manage them anymore.

But if it's a disregarded LLC and you both file jointly, then it doesn't matter if the LLC or your names is on the deed of the new property because you are all considered the same taxpayer and can be the purchaser for your replacement property.

A properly installed radon mitigation system with post‑test results under typical safety thresholds doesn’t devalue a property; if anything, it reduces a future buyer’s objection by turning a health risk into a solved, documented feature.