You should not have the 'friend' record a deed on the property, have a contract between the two of you for business purposes and purchase the property jointly and pay back based on the contract/agreement you have with them.There are other types of loans like Hard Money & Non-QM programs that may have different guidelines that can help you as well, but, the Delayed Financing option will give you the best long term rates for a longer term hold with fast repayment of most of your capital.  

Non-occupant cosigners don't do you any favors in terms of FHA down payment requirement on a 2-4 unit.Apply together, ask your lender to work it up individually for each of you, and jointly as occupying coborrowers.

Only if we file taxes jointly?

If you insist on starting right now then what I recommend is building your buyers list and then reaching out to other wholesalers to see if they want to JV (joint venture) a deal with you. 

Your LLC is a Texas LLC for legal liability purposes, and it is treated as a partnership for the IRS purposes.No changes needed.If the second member is your wife - you will simply report your rentals on your personal joint return.

Not sure how much the house is worth but if it's in CA, likely worth more than that, so likely a probate would be needed before the daughter or anyone could take title to the property from the decedent (unless held in joint tenancy). 

New to wholesaling in the Houston Texas area and just need overall clarification on proper joint venture etiquette.

Thanks @Ben HowardHere are some quick insights (lists) about the Sacramento County MFR 2-4 market:16,044 properties designated MFR 2-45,056 owners live outside Sacto County4,476 owners live outside of California884 were sold/purchased in last 365 days (~5.5%)2018 YTD: 3432017: 9432016: 8632015: 8124,520 have 100%+ equity796 are underwater12 are in Preforclosure263 marked vacant by USPS143 were purchased at auction by a trustee sale buyer1,445 have had a death of joint tenant in last 365 daysSince 2016, 676 transactions were off-market - and scanning through those buyers a lot appear to be investors as they've done 2+ deals or their LLC name indicates investment orientation.

At this point even when my closest high school friends ask me to Joint Venture i explain that we will have a lawyer write up everything. 

We commit our time and energy into a joint venture.