So $4,500 of additional costs to have a partnership only to avoid hypothetical risks would exceed the profits from many SFH. 

Ensuring your rental market can sustain these costs will help maintain profitability over time.The 7% DSCR loan is relatively high, and refinancing later at a lower rate could improve your long-term cash flow.

But I'm having trouble finding any properties that I could rent, BRRRR, or flip where I would even break even—let alone clear a profit or cash flow.My question is: When you hear that I'm essentially doing 100% financing, does that make it clear to anyone what strategy would be best?

While they do lose a small monthly management fee during a vacancy, they instead collect high profits from turnover charges and leasing fees for each new tenant.

Also, I'm not sure how you're paying attention to it on the tax side, but the unit that you are living in's profit at sale is calculated differently than the other unit that you're renting out.Once you move out, that unit is officially available for rent so from that point forward, any profit gained at future sale will be calculated starting from that point and will be taxable.

The problem is that your debt payments are going to basically wipe out that $400K profit unless there is room to increase revenue or reduce expenses.

We share the profits and split losses if any 50/50.  

This is essential to running these profitably. 

I have found that the profit margins are very low in this model if the house is in a C/D neighborhood because you are limited to the amount of rent you can charge for each room.

What was your upstart expenses and do you consider it a profitable endeavor or something that just waste time?