The LLC will file a partnership tax return (Form 1065) and issue K-1s to each partner, with income split 50/50 and reported individually.

Can anyone verify this is OK or is it state by state-regulated based on their individual jurisdiction?  

Is it beneficial to create individual LLCs for each rental property?

The income is also sheltered by depreciation - ie LP investments for tax purposes are basically treated the same as individual investments. 

Im not expert but Ive took out a heloc and dragged on going on my advise and it suckedHi @Mario Morales, There are 2 things I would pay attention to in the scenario you describe. (1) Most cash out loans are limited to 75% -80% LTV meaning you wouldn't be able to get all of your cash back out. (2) The interest rates I see in the market are closer than what you've listed.

They will likely request a copy of your most recent form 4562 and schedule E depreciation supplement and handle your individual depreciation schedule in the K-1 for the OP units.

., I'd still recommend QBO but using it differently than you currently use it.Adopt QBO Plus, and as long as all of your entities are "disregarded" for tax purposes, you can use the location/business feature to track each individual entity all within 1 QBO subscription.If any of your entities are a "filing" entity (file a separate tax return; partnerships; corporations; etc), those entities require their own QBO subscription.Happy to discuss further.Hope that helps!

My goal is to connect with like-minded individuals who are passionate about wholesaling, creative financing, and building wealth through real estate. 

My goal is to establish mutually beneficial relationships that enhance both their careers and mine.I look forward to connecting with like-minded individuals and teams passionate about success in real estate.

(Note that by default each individual property is its own activity but that people regularly group properties or group activities.