Each multifamily building I have has its own bank account.

They simply skip over/ignore concepts like vulnerable persons, equity skimming, equity stripping, bank fraud, wire fraud, mortgage fraud, escrow and closing, etc  It's now the "thing" to do.What could go wrong?

The moment the first payout hits your bank account, all that goes away.

In response to your original question, closing agents should handle private loans just like a bank loan. 

Traditional mortgage from a big bank, 10% down payment What was the outcome?

You typically need up to two years of stable employment before a bank will loan to you.

You technically CAN break it up on Schedule E; however, it is not the best thing to do for audit purposes or an actual breakdown.You should have an operating/partnership agreement together and you should have a dedicated bank account for the property.  

As I studied earlier, the first thing you should do is marketing, then get a call and do a property analysis to understand if it's profitable for you, then meet with the seller and sign all the necessary papers, then if there is a debt in the bank we do a reinstatement quote, then do a title search to check if there are any hidden debts, if everything is fine we look for an investor or flipper and sign an assignment of contract with him and wait for closing to get our money.

Basically, they name everyone because they’re hoping and counting on the fact that people set up their own LLCs and didn’t adhere to basic entity maintenance and kept things separate (like bookkeeping and separate bank accounts).

The truth is, over the last few years, many of these people are barely cashflowing at all and the default rate with the banks on this product is skyrocketing.