Now lets say I have mortgage that is slightly higher than the rent value, should I disregard this property for investment purposes because it doesn't cashflow from day 1?

Once your partner is bought out, the partnership turns into a disregarded entity from the IRS' perspective.  

Much of the existing information from the pundits will tell you an LLC (taxed either as a disregarded entity or S corp) was the ONLY way to go in real estate.

As a general rule I disregard the 50% or 2% rule.

Much thanks in advance Mike Roterdam Minnesota @Mike Roterdam ,There are no tax ramifications unless your LLC is anything other than a disregarded entity.

Not to totally disregard your questions, but what's the worst that could happen?

I would have never had this opportunity if I just stayed at home and took the safe route.If you do not live at home and you live on your own then disregard most of what I just said... haha...To sum up my rant: Experience will open up more opportunities than you can imagine.

Just disregard the guru sales pitch.

Only to have the old school RE agents just disregard any of said advice, and continue to advise their clients to prefer the conventional loan over an FHA.

Either way, his all-green credit report goes back far earlier than the move from his house, so whatever caused that, did not damage his credit.She has highly-fluctuating but generally low income, credit score 513, credit report looks like a paintball target; two accounts written off as bad debt, one in 2009, one in 2012.I'm not sure how to evaluate this situation....In evaluating the debt load that this rent would put on them, I am disregarding her (low and unreliable) income, and looking at his; the rent on this house will be about 50% of his income.