He hands over all his cash to you, and lo and behold, he continues to get proportionally sufficient income, like he already is out of you?

I don't know for sure, I haven't been looking, but if you want a higher proportion of the expenses paid you need to have a higher proportion of the house as rental.

Is there a way to make it more compact and easier to read?

I will also have decision making authority.Passive investors would receive a preferred 8% return on their investment annually plus a proportion of the other 50% based on their proportion of investment relative to the total capital collected. 

Are there are areas of Oakland with a higher proportion of these properties where I should be looking?  

I'm actually really high on 2 bedrooms right now.Two bedrooms are cheaper than larger houses, but the rents don't drop off as much proportionally.

Should there be profit, the same shall be divided in proportion to the equity each has over the property.

Obviously the 1902 building was not built as a condo.To throw another wrench into the discussion there is another form of ownership called a co-operative or co-op which is used in NYC and FL, where you are buying stock in the company that owns the entire building in proportion to the square footage your unit is in ratio to the total building square footage. 

I´m not familiar with any service that tells you the proportion of multi-families vs single families vs townhomes vs manufactured homes in a particular area - that just comes down to local knowledge.I´m based overseas so do most of my research remotely as well, but as @Michael Haynes alluded to above, you really need boots on the ground to be successful.

good luck, keep posting but most of all keep sharing, this is an optimal dilemma of epic proportion, that being said i tend to agree with just about everything mrs. nourse so elegantly laid out, it a tough issue no matter how you look at it, but at the end of the day you are in business to make a profit, and hopefully give away a portion to charity, and emphasis on just that "charity!"