This is your total monthly debt payments divided by your total monthly income.

Then I divide that by half for operating costs.

We do offer bank statement HELOCs for business owners who don't show income on paper but can show revenue coming in(bank statements), doesn't sound like that applies here.Freddie Mac allows for assets to be counted as income, 70% of total divided by 240.

However, had I a more liquid investment like a divident fund or S&P 500, I could not only pull out some in dividens, but I could pull out 250k in principal as well very easily and quickly.

I was also told that the LLC interest has to be divided based on the capital contribution and cannot be divided based on the work, for example it can't be a 50/50 partnership if one puts all the money and the other does all the work.Any additional insight or leads would be helpful!

You can claim it all at once, or your can divide it out over several years. 

The new development here are all the Latinos etc. who have Service Trucks and Trailers and they Rent a big house with five to ten friends to divide the cost of Rent in good neighborhoods.

How will the lump be divided between owners considering this? 

Red Flags: Multifamily is valued based on NOI divided by Cap Rate.

Maybe that math is a bit over your head but it is simple and actually you take usually 80% of the improvement and divided by x years (based on residential or commercial) to get the proper amount for the tax right offs and you still have so many more deductions, so let's not brush off that subject.