Or is it not worth it/should we just pro-rata everything between Schedule E and Schedule A on each of our individual tax returns?

The basis of the property is allocated to each individual unit on a pro rata basis so Each unit will have a % of the original basis and will generate a % of the net profit.  

@Tony Lin in other words yes. the investor gets his/her pro-rata share of the depreciation (and typically other benefits associated with owning real estate) UNLESS the operating agreements spell out something different.

On Page 206 he indicates that the same structure is permissible with an IRA and an individual cash investor (whether they would otherwise be disqualified or non-disqualified) as long as any future contributions are pro rata to their initial investments and neither buys additional interests.

You can specify something like "all income and expenses are to be split in a pro-rata fashion according to ownership percentages, except for depreciation which shall be split as follows".Then write up how you want that split.  

You may require them to have that as well, but they pay your insurance (monthly, to you, as part of the pro rata charges).You are right in assuming office space has longer vacancy than residential, but the tenants stay longer.Repairs should be passed along to a tenant.

Since conventional loans monthly payments are just PI and VA is the pro rata PITI, does that give conventional more leeway for their DTI calculations?

My understanding is that we would have to pay pro rata and would only get part of the profits exempt.

So if they can sell for say $300,000 on MLS in 120 days, they SHOULD be willing to sell for $300,000 less $18,000 broker commission less $5,000 interest, taxes, insurance (pro rata), less a $3,000 premium for a “sure” sale, or $274,000 assuming no repairs needed.

If you invest passively you should receive your pro rata allocation of bonus depreciation on your K1 along with the other investors.