This is not a one size fits all answer, but bad debt is non-asset based or depreciating assets - , credit cards, medical, buying dumb stuff.Good debt is debt used to make or grow your portfolio. 

I look forward to seeing how you encourage others to likewise grow.  

Ask how many units they manage and how much experience they have.

You can't even get an officer to a traffic accident anymore and how many domestic violence situations happen with little to no attention.  

If purchasing new real estate as part of your reinvestment, a cost segregation study can maximize depreciation deductions, offsetting future taxable income.For effective planning, assess how the sale price is allocated between real estate, tangible assets, and goodwill, as this determines the tax treatment.

We now are looking to create an LLC and setup the necessary legal documents to protect both parties and layout the terms of the agreement.

@Jason MatthewsHi Jason, Welcome to the community. 

Newbies create a lot of different issues, however.You are probably not going to be able to use Fannie Mae as a contingency.

Now, you need to figure out how to find deals and pay for them.

How much vacancy do you calculate into your numbers?