I am still relatively new to the concept but would it be unwise to setup and split the house to divide our living situations?

Now, some of the math here might be dependent on how you PURCHASED the property (with cash or with a loan) but just for concept purposes here's what I would say the differences are:1.

They do not understand that most RE purchases in many/most markets start with negative cash flow. 

., you're looking at negative CF...probably for life. 

If the Landlord/Owner pays for it out of the rental income, then include it (i.e...taxes, insurance).2 - Cost Recovery:  Divide the Down Payment (plus any other CASH ONLY costs that come out of the Landlord/REI pocket, i.e....repairs, vacancy costs, added payments towards the principle made by the REI, negative Cash flow) by the yearly Cash Flow. 

To me, the best option is one that isn’t cash-flow negative to your financial situation the first few years as you get started.

You are basically breaking even, and if something big happens he could be in the negative.

I keep getting a negative cash flow!

I get bored and love to come up with new ideas and concepts.

Totally agree with the concept of boot them.