Unless apartments are just not as marketable, then a multifamily building is likely the most efficient for construction expense, operating expense, and rent/SF.With a building of only 12 units, I doubt you'll see any time-based advantage by phasing in duplexes.

On top of that, you’ll want to budget for ongoing expenses like property taxes, insurance, operational costs (such as utilities and property management), and maintenance.

So, they make the process of being an investor seamless and you having to do nothing as they after you closing turn into you management company with a standard 10% management fee (which I am okay with). 

I am trying to figure out the fairest way to go out about this so we can have it written in the operating agreement.

Welcome Sasank, my name is Thomas and I operate out of the Phoenix area, would be happy to answer any questions you have about Arizona RE. 

Further, if planned well, you can have lots of operating expense deduction.

Hey, MadheshwaranFellow short term rental owner/operator here. 

Keep in mind, that is NET income, so with enough operating expenses, and depreciation, you might wipe out any income, and thus no UBIT, you will just need to run your numbers.

They’re a large PM company, operating in about half of the U.S. states, but lately, the local turnover has become a real problem.

I have watched some Youtubes and most operators say 3-4 bedrooms and 2 baths are ideal.