I doubt I could find anything that would cashflow unless you put over 25% down. 

I would build a relationship with the person before you decide to partner.

I can't just put the LLC's income directly into my joint personal tax return, right?

Personally I am thinking 1c.

You will quickly find, as you generate local person-to-person relationships, how many opportunities open up! 

A person doesn't have to like these new realities but realities they are none the less.

So is this just as simple as showing how much the property makes or do they also look at personal debt to income, credit score, reserves etc as well.

I've personally sold a number of properties to VA buyers.

Let's break it down with precision:The "Pain" (At First Glance):Your $2.8M sale splits out as:Building (§1250): $2.3MPersonal Property (§1245): $500KOriginal Basis Allocation:Building: $1.6M (depreciated over 27.5 years)Personal Property: $400K (fully depreciated)Building Depreciation:Annual: $1.6M ÷ 27.5 = $58,182Total over 10 years: $581,820Gain Breakdown:Building (§1250):Sale Price: $2,300,000Original Basis: $1,600,000Less Depreciation: ($581,820)Adjusted Basis: $1,018,180Total Gain: $1,281,820Unrecaptured §1250: $581,820 (25% max rate)Capital Gain: $700,000 (20% max rate)Personal Property (§1245):Sale Price: $500,000Adjusted Basis: $0Ordinary Income: $500,000The Strategic Play:Remember those suspended passive losses you couldn't use?

@Adrian Lammersdorf-SciollWhy does everyone want to chase strangers – and ignore their own personal network?