First, as a proud veteran, and citizen of these United States, let me first impress upon you the incredible capacity of the Federal Government to lose track of things.

Your idea is good however, buying for pure cash flow limits the future buying capacity!! 

What is your lending capacity?

Although Hoasty is in no way tax professionals, we are great at helping our owners in every capacity of their properties especially when it comes to wealth preservation. 

Can managers or agents of LLCs be legally liable for torts committed while they were acting in their capacity of managers or agents for the LLC?

@James ScottI'm not an attorney, just a tax CPA, so I would recommend you talk to one before forming an entity.Based on my limited understanding of the legal side of things...and again this varies by state....I don't see how you can call your partner an LP with a straight face if he's out there rehabbing the real estate and making day-to-day decisions for the business in his capacity as a partner. 

She was at 100% capacity.

You in your individual capacity would be one partner and your friend's LLC would be the other partner.The tax reporting depends heavily on how you structure this venture, and that heavily depends on both you and your friends facts, circumstances and goals. 

Neither one of us have W-2 jobs, so if you are still working full time in another capacity, you may need some extra help.

The rougher the property, IE lower rents like these higher capacity rate like 12% or 0.12.IE a 6 door actual rents, excluding vacant Doors, 550/mo, 6 doors, value is.550 x 6 x 12 x 0.5 = 19800At 10 cap value is 198kLess differed maintenance less negative factors...The challenge in underwriting commercial is determining actual expenses when the owner has poor books o.