We make it simple, if the owner is making money than we are making money but if the owner is not making money than we are not making money.2.

I would check with a few different groups to make sure that they can operate in Detroit, and also to make sure that they will lend to the property in question based on the value.

There are a few DSCR lenders that will allow you to operate a rent by the room strategy as long as the strategy makes sense, and no one related to you is one of the tenants.

I'm an experienced workforce housing owner and operator.  

Or ask the third owner if they would also consider selling, so the whole property is sold.Whether a partnership or LLC, follow the Operating agreement. 

Go here and ask the operators yourself: https://www.facebook.com/groups/officialpadsplithostcommunit...

Second position DSCR does exist but rates are even worse than HELOANs, I'd expect 11-13% right now.Getting a simple cash out refinance sounds like the simplest option, but if you can just get a large first position HELOC only that would be a pretty convenience deal.

I operate several mid term rentals and I'm still a big fan. 

Banks aren't really in the business of lending to real estate investors anyway...they focus primarily on "operating entities", but they can be done.

When there is turnover on client's prop, simple, have a REALTOR show it.