Becoming a landlord - Need some direction

[Jonathan Schell]

I have identified the properties I want. They are fully occupied with paying tenants. I have asked for two years of financials to substantiate the claim. What other type of documentation should I ask for? Is there any public record I should have pulled?

I have enough capital to put down 20%, but I'd rather not. How can I dodge this? I can squeeze the 20% down payment out of my primary residence equity, but I'm not sure if this is allowed in conjunction with a traditional mortgage. 

I am unsure of what type of entity to create. The LLC is kind of a poor mans go-to, but I don't know that I want a pass-through because of my personal income level. I would also prefer to not actually spend the money I'm making off these properties. The money should remain as part of the entity and as untaxed as possible. I could use some advice here.

A local property management company charges 6% to handle advertising, screening, contracts, collection and evictions. I work 40-80 hours a week on a rotating day/night/afternoon schedule. Until I can break free from servitude, I'm very likely going to need a property management company. A 6% fee sounds good to me, but is it?

[Jeff Sheraton]

My understanding is that LLC's are really the way to go with passive income like a rental property. If you were to place the rental in a corporation (S or C) you would have to pay yourself a "fair wage". These wages would be subject to self employment taxes (social security and medicare). If the income all flowed through an LLC you could avoid paying self employment tax altogether as LLC's are not required to pay wages.