Bad:  high turnover rates, young, immature tenants with low or no income, rent caps.I think the good can outweigh the bad ultimately, as long as you buy it right.  

I looked at properties that have big advantages that outweigh some of the downsides (like nearly all property managers suck..)Property #3  Cash flow in Memphis with built in equityMemphis (B/B+ neighborhood for memphis) - TK provider -Memphis Cash Flow (NOT Memphis Invest)Purchase price  $154,900   $54/sqft !!!!  

I don't think the inevitability of a disagreement is enough to outweigh the pros of partnership.

Here's the decision as I see it:Does the time flexibility and lucrative pay of being a property manager outweigh the highly illiquid nature of this  investment?

Granted there were two sets of closing costs, but the long term benefits of the cheaper financing more than outweigh that.

Yes the mortgage broker takes a cut of the pie....but typically the rates and loan products they are originating are being done at a larger discount than you could get, so their fees are outweighed by the discount you get using them.

And assuming we're talking buy and hold, wouldn't the long term stability outweigh any market fluctuations, especially since you'll be paying it down. 

You have continuing ed and yearly expenses and a whole host of disclosures that I personally don't think outweigh the benefits. 

But not enough to out weigh thr tens of thousands in taxes most likely.

The perceived additional taxes that you might pay will be far outweighed by the benefits of a good real estate portfolio.Good Luck