I have a strong feeling that our market will replicate california soon.

If you aren't doing it, you should use the average amount with the oil company based on other year's usage and they will average it so it's not $500 in one pop (depending how big these tanks are).

The lenders I have seen that will cross properties as a second lien are generally strictly hard money or asset based. 

Quote from @Renee Pohle: Please talk to an attorney and create a strong partnership agreement that includes a method for parting ways.

I just started investing in syndications last year for the first time because I wanted to give up operational control and I had fully vetted the operators based on my network and own interviews.

If you have a strong foundation with capital aside it's easier to stomach.

Not at this point, and to keep it equitable between the two we actually average the cash flows for the two homes and that is what their payouts are based on each month.

It appears the base zoning must allow for the creation of 3 units in order to lease a total of 8 bedrooms.

My suggestion is to look for someone with a strong track record in investment properties, ideally someone who has successful investments themselves.

@Charlie Martin Buying under an LLC offers liability protection and separates business finances, but it can complicate financing with higher rates and stricter terms, and lenders may still require a personal guarantee, impacting your DTI.For your first property, consider purchasing in your personal name for better loan terms and transferring it to an LLC later if needed, while using strong umbrella insurance to mitigate risk.