My mother originally agreed for me to refi some money out of the equity of a house we co own but then she changed my mind after I signed the contract on the guesthouse.  

However since this is our first rental, we are getting cold feet and suspicion that it might be a money pit or go wrong drastically.

That likely means that they are not good with money management which you are likely expecting from him.To answer your question, if you are doing long-term rentals, the LLC taxed as a partnership is likely the go to route.Best of luck.  

You mean I have to spend money on the place after I buy it?

Pick something that fits your style and investment of both time and money. 

Money has to come from somewhere so where will it come from.issue will be if they increase sales tax it will be regressive tax as those who rent and don't own and have low wages will still pay more for everything.

Just curious.If you are going to pay a PM, just be aware that you might not make any money on it.I just use a spreadsheet.

So, that usually means the investor is working with their own cash or a hard money loan. 2.

Last month, we were hearing that rental listings under $1250 were continuing to get movement, but anything higher was becoming stale on the rental market.

Hard money loan How did you add value to the deal?