In this case hopefully you would have memorialized the economic arrangement between yourself and your partner with a TIC agreement.When multiple taxpayers each have a TIC interest in a property, each reports on their respective tax returns their pro rata (i.e., proportionate) share of the property's revenue and expenses depending on their percentage ownership of the property.If your economic arrangement between yourself and your partner is more complicated than the mere sharing of revenue and expenses based on your interest in the property such that your shared activities rise to the level of engaging in business together, then you may have a partnership for income tax purposes and would be required to file Form 1065 and related state filings, if applicable.Among other things, maintaining proper property books and records is essential to maintaining TIC status before the IRS.

I know the LLC mechanics, but tax is still a bit above my head.]Hey @John Woodrich - from tax perspective, do you have an opinion one way or the other if @Jon Loca did the following:Dad deeds property over to LLC, for "consideration less than $500" to avoid hefty deed tax when recording.Dad invites his partner-son to become a small part-owner of the operation of the business that is this rental property by buying into the LLC for "services to be performed"Lender like @Tim Swierczek helps get the property refi'd under the LLC, with cash distributed pro rata to the owners -- does that get ordinary income, or capital gains treatment?

Cash available for distribution from the sale or refinance of the Property shall be returned to the Members, Manager and Advisor, pro-rata, in proportion to their Capital Contributions, and 60% to the Members and 40% to the Manager, Advisor and affiliates thereafter.Could anyone let me know how to calculate my return and how much would be my total return once the property is sold?

Are they pro rata or are there complicated distribution waterfalls, etc.?

On a personal level, I have a wife, two toddlers, a dog and a rat a cat.

Whereas for Roth IRAa, distributions are deemed to first come from amounts contributed ("basis") and are thus not taxable up to the total amount contributed, Roth 401(k) distributions come out of basis and taxable earnings on a pro rata basis.The following link to the IRS website should be helpful:https://www.irs.gov/retirement-plans/retirement-plans-faqs-on-designated-roth-accounts#distns

My initial thought was to have an LLC created in my Dad's name (I don't have a spouse) and issue two share classes - Class A being where only I can invest and it returns 100% of my pro-rata share of cash flows and has some sort of increased dividend, and a Class B where outside investors come in and have a more standard 8% preferred, 70/30 cash flow split.

First each property will have it's own basis consisting of its pro rata basis in the exchange plus the capital basis added through the improvement process.  

(b) “Tax sale property” means a parcel of real property that was sold in part as an undivided interest at a tax sale in accordance with Section 59-2-1351.1.(2) If a parcel of tax sale property is sold, a tax sale interest purchaser may only receive from the sale of the tax sale property, an amount equal to the greater of:(a) the amount the tax sale interest purchaser paid for the undivided interest in the tax sale property at the tax sale plus 12% interest; or(b) the tax sale interest purchaser’s pro rata share of the sale price of the tax sale property based on the percentage of the undivided interest the tax sale interest purchaser holds in the tax sale property.(3) A tax sale interest purchaser may not object to the sale of the tax sale property if the tax sale interest purchaser receives an amount in accordance with Subsection (2).

A CAM charge is an additional rent, charged on top of base rent, and is mainly composed of maintenance fees for work performed on the common area of a property.Each tenant pays their pro rata share of a property's total CAM charges, which prorated share is the percentage of the tenant's rented square footage of the total, rentable square footage of the property.DSCR - Debt Service Coverage Ratio - (From Google)The DSCR or debt service coverage ratio is the relationship of a property's annual net operating income (NOI) to its annual mortgage debt service (principal and interest payments).