I am in an R3 zone so I am under the impression I have the ability to do so.

I personally collect a security deposit and get the damage protection waiver for added protection.

They may pay what is owed, or I may have to send them to collections and get it the hard way. 

Beyond the obvious questions of what this "team" does, I was very confused by Bob's comments as I was under the impression that Bob owned a Cleveland property management company called 5 Points Property Management.

Unfortunately, even without a lien, HUD can still collect as you signed a promissory note.

. $550  / mth * 8 unit = $4,400 * 12 mths = $ 52,800 GRI  ****not $53,800****The formula for CAP = NOI/PriceNOI = [GRI - V&C loss + OI] - EXP  *****You did not subtract for expenses to arrive at NOI nor include a vacancy and collection factor****Assuming expenses are 50% and 100% occupancy (which 100% occ is not realistic all the time).

Either define a set period of time that you will serve as a manager for no cost and then collect xx% of revenue as a management fee before splitting profits.

Only one bank account needed, but you'd have to track income & expenses to do transfer and year-end accounting.As @Nathan Gesner mentioned, not really worth it.You two could also open a joint bank account for collecting rent and pay expenses, just be sure to track everything.Do NOT do what @Paul De Luca stated about transferring title!

Would 1st lien position and rights to collect the property if I default be considered skin in the game? 

Have you ever had a pet cause more damage than the fees you've collected?