We do get a better fee/split structure, and that's a fair trade for the extra work of managing a large investor base and it's associated extra accounting and tax reporting overhead.I also find the advice in the OP to be contradictory. 

Our model is basically 2 people to a room, each individual pays $175 a week, each house has a manager (who lives free of charge)that handles intakes, discharges, accountability, checking chores and collecting the rent.

My advice is: If you are managing from a distance, you need someone with a high level of accountability and close proximity to care for your assets.  

We want to hold people accountable-- if you can make money on selling that ********, you can eat some crow when the chickens come home to roost. 

@John CarrI recommend finding an accountant who specializes in real estate taxation and tax planning.

I am sending rent invoices and they are directly depositing the rent from their checking account to mine.- They had their corporate counsel review the lease and request a few changes.

It could be this was a standard periodic reassessment to account for market value increases and there's nothing to fight.

You can tithe on rental income, just as you account for property management.

That’s a pure cash flow play - monthly interest payments hitting your bank account is a great feeling!

Not unless you are a slum-lord and have total disregard for the law.Setup one LLC with two bank accounts.