The forms are online, and it costs $100 per filing. 

Just download their tax package and you're done!

An LLC when properly formed and administered provides separation and protection of assets that are outside of the LLC from the actions of the LLC.  

You can spend as little as $100 to form an LLC, or you could use an attorney and spend $1,000 or more.

My CPA was unsure... do you issue 1090-NEC for the difference between 1099-K and 1099-MISC or do you double up the income (i.e. 1099-NEC for gross rents from PM, 1099-K of the net owner distribution on 1099-K, then owner reports double income and puts a line item expense for the 1099-K since 1099-MISC covers gross rents).You need a new accountant lolPM issues 1099-MISC, not NEC for rental income paid to property owners.You would still issue the rental income paid to the owners regardless of the payment method.The Property Owners should add an expense line item on Schedule C stating that income reported twice on Form 1099 to offset any duplicated amount.

Their ability to invest alongside is merely a way for me to ensure they take their responsibilities seriously.

I said that was too high for me and offered $170,000. 

Quote from @Jules Aton: Sofa struggles for me right now. 1-bd beach condo so not large family traffic. 

The larger the purchase price the greater the spread you need between purchase price plus holding costs plus rehab cost and ARV.  40k projected profit on a 600k project is too skinny for me. 

Myself personally I'm invested in Buffalo and NYC, but that's because it made sense for *me*.