I've been listening to real estate podcasts for a few months, and find BiggerPockets to be among the most educational and entertaining.I rented out my house when I left Washington, so I own one property.

So who among the group of newbies who've never done a deal will advise you on how to move forward and succeed?

You would not be among the first ten thousand landlords to be told that and suddenly stop receiving those checks and notice tenants with new TVs and things leading up to the eviction date.

@Tom LinnikWrite out all the terms you agreed to among the three of you in a logical way.

There tends to be widespread consensus among the investing community that paid off, all cash real estate tends to produce lower average returns than other types of investments (like stocks) dollar for dollar.

The main purpose that I signed for this website is because I strongly believe that knowledge and wisdom should be spread among the people.

personal i would consider an LLC  due to the amount of debt, liability and potential loss that insurance may not cover depending on circumstance, but feelings are mix among the community, talking to a lawyer with REI-exp would be advised along with a tax professional before setting it up is a good idea because if you structure it wrong it will make a headache at tax time, definitely dig into the forums here on BP an simply search for LLC or should i LLC and dig around there is limitless advice available on here ,  hope i was a little help in your decision or steer you toward your answer.

Do you split the costs evenly among the tenants?  

Well a common secret I see among the successful persons in Real Estate. 

Account Closed  I have not found anyone who would use a new appraised value sooner than 6 months, even among the bank statement / alternative doc lenders.