Are you looking to just put the money to work or looking to be personally involved in getting, rehabbing, and dispo of deals?

Just outline expectations and roles, and what each of you guys are going to do, and how properties will be acquired and how they will be disposed of, and how and when money will be taken out of the company and you should be good.

I wonder if you could actually mix the two populations?

There are pros and cons depending on your goals.Why an LLC Might Be a Good Move• Helps protect your personal assets in case of a lawsuit• Makes it easier to bring in partners in the future• Keeps your real estate finances separate from personal accountsWhy It Might Not Be the Right Move Just Yet• Most traditional lenders will not give a mortgage to an LLC, so you may have to use commercial or DSCR loans, which usually have higher rates• Some people assume an LLC will save them money on taxes, but rental income is still taxed as pass-through income for most investors• There are extra costs like annual filing fees and bookkeepingA lot of new investors get stuck on this decision, but the reality is, you can always start out in your personal name and transfer properties into an LLC later.One more thing I wish someone told me early on is that property management takes more time than you think.

First - You should be investing to make money and a return.

Pittsburgh is a good market to make money in now cash flow wise and has good upside as well if you know what you are doing. 

At that value, you'll make the money back on resale, if not also on the appraisal. 

and if you don't have enough money to house hack in San Diego... save up until you do.and if you want to move somewhere else, house hack there. 

In your situation there is actually another factor that may work in your favor.Only the proceeds allocated to the sale of the building can be used in a 1031exchange. 

Will this be a good investment time and money wise?