It will also be unlikely to get a 30yr loan and instead I can expect a 15 or 20yr loan.We run our pro-formas at 5.5% and a 25 year am.

If all the obvious ideas don't work, then you simply form a joint venture with your landlord to get coverage.

So recently I created a Financial Analysis template that would automate my decision making process, generate marketable Pro Forma Financial Statements (Still somewhat of a work in progress).

The LLC, when properly formed, will compartmentalize the risk between Sibling #1 and you.Option 2: Series LLC (preferred) This situation would depend on your own portfolio, but you can also form a Series LLC.

Over the next month I am going to be trying to form a relationship with a good title company that is familiar with dealing with investors. 

You can check out this article on the best states to form a Series LLC.

Here's how the process works as I understand it:1) You list your property2) Tenant expresses interest     a) you do your background check - if approved:3) Tenant gives you their S-8 RTA form     a) You fill out your portion and return it to S-84) They determine if your rent is within their market guidelines     a) If it is not, then they say "hey,  your rent is too high for our program, we'll only allow $635/mo, not $650" (as an example)     b) It's up to you at that time to determine if you will accept the lower amount or not.

Alternatively, if the same firm that is helping you buy is also responsible for managing the home, it avoids finger pointing should the reality not match with the pro forma.

A friend and I are looking to form a lasting RE partnership and looking to get it legally drafted. 

The best way is to form a relationship with them and then start adding value to them as often as you can.