Also setting up a doctrine of ground rules as something to point to when there is disagreements.

We have rules when it comes to misdemeanors and felonies.

Just keep a few things in mind: First, make sure the mortgage lender’s cool with the arrangement, as some have rules around subleasing or leasing to an LLC.

@Austin TessTo buy your first multifamily property, follow these steps: get pre-approved for financing with an FHA Loan, identify a high rental demand market, choose between house hacking or pure rental strategy, analyze the property using the 1% rule, build a team, negotiate the purchase, and manage the property professionally.

Nonpassive income: Real Estate Professionals, STRs and K1s from businesses where you have hands-on involvement aka material participation.Each group has its own rules, and generally they cannot offset one another.

If that isn't the case you can appeal their ruling.  

If so, if you are not familiar please familiarize yourself with FEMA 50% rule.

Both are decent in both appreciation and have decent properties that clear the 1% rule. 

Given your situation, a multi-member LLC could be the safer choice to keep things straightforward with the property transfer.

What I've described is a straightforward process.I hope this helps.