Some properties also cant be rebuilt so supply is limited while demand increases for a few years.

Let's break it down into two pieces, the LLC and the partnershipThe LLCYour current operating agreement should lay out ownership structures and contribution.  

Any tips on structuring deals or ensuring a smooth process would be greatly appreciated?

I think Jacksonville, comparitive to the nation has good rent to purchase ratio's.However, from what I am reading, Jacksonville is going through a huge increase in supply of houses.I think you can always make a deal happen in any city but I would personally wait until the new supply is absorbed.

Sounds like there might be some more facts of the entity structures since you imply a k-1 will be involved but only reference ownership of property A.

@Jack Lee is is great to know how to structure the deal, another is to find the property and make sure you are not missing the issues you will run into with an older house. 

Since my business is structured as an LLC the taxes have them all reported together as LLCs are a pass through tax structure.  

They can only provide a general liability-only policy through Lloyd's, which doesn't cover the physical structure or contents.If anyone knows of a good insurance provider that offers comprehensive coverage, including protection for the structure itself, I would greatly appreciate your recommendations.

I happen to agree with most of the folks on this board that this kind of structure is overkill.Also, understand there can be issues getting a mortgage with an institutional lender and potential problems getting title insurance.

The other thing to keep in mind is that you will have to keep a supply closer or room with your extra bedding and materials and a checklist for you cleaning person to run when they turn the unit, as well as a smooth process to screen, lease sign, and collect payment from the guest.