One common approach is to form a legal entity, such as an LLC, where both of you are equal partners.

In 30+ years we've been sued 1x (legal blackmail over a tenant's drunken trip/fall) which the insurance company settled for $1,500.00).We've been using some privacy tactics to keep our names off the county recorder and the target off our backs.Further, we review our insurance coverage and premium annually, just to keep on top of any changes.As with all insurance, it seems to be a waste of money... until you NEED it!

Provide clear instructions on where and how to pay to avoid confusion.Recover Security Deposits: The current property manager is legally obligated to transfer tenant security deposits to you or the new management company.

Do not rely on it for legal advice.

This is for basic informational purposes I am not an attorney and this is not legal advice.First, if you offer to purchase a property using a HELOC to fund the purchase you cannot later back out of the agreement because you couldn't find PML or investors.  

It's basically a legal 2-unit that can cashflow $900/month.

Or really they were ALL pre foreclosures when it was legal to do this in OR and WA laws changed in 08.

This is both a legal and tax question. 

And agents are legally prohibited to engage after closing - at least per Wisconsin State law. 

If you need financial help, ask under the "Finance, Tax, and Legal" forum.