My 2 siblings and I now have separate trusts derived from Dads (we all get a K-1). 

For our clients, we separate repairs into catergories: 1) Health & Saftey - highest priority to avoid lawsuits2) Property Preservation - don't want a $500 water leak repair to become a $5k repair later3) Government Required - for city & S8 inspections4) Marketing Negative Impact - who wants to rent a "purple" house?

It is a separate taxpayer. 

You're right in that it makes no logical sense so my best guess is that it's an emotional thing for them they have to work through.  

Most of our acquisitions and larger rehabs are done separately.

You could use a little of the rental income to qualify that, but that would only be for separate units.

You have a separate individual inspect the quality of the clean for each turn?

These are typically lower levels with separate entrances.

They are in communities which sustain themselves  from withn, separated from our communities. 

Might be you're not set up properly to obtain a separate account.