While formerly the limited partnership organizational structure was used, its now mostly an LLC structure being utilized.  

(120k total)2nd house we are making a profit of 120k but this  "profit" would literally pay us back for our initial investments into our LLC together we used on the first house ...anyone have any idea how the gov.

In a situation like that, if the market is right and the research is right, you're earning essentially everything you would in just owning the property outright, other than the fact that you won't get the tax benefits (but your LLC will). 

To structure a partnership, consider forming an LLC where you handle property management, renovations, and operations, while the investor provides the down payment.

We were surprised that Kiavi never thought to call the vendor of their software, or a database technician, to fix this.We provided the requested copy of our LLC articles of organization.

Quote from @Janet Lancaster: Hi all  My name is Janet Lancaster owner of Jade Peak Properties LLC.

If you are sole member LLC you just take a distribution from your business account to your personal account.You are likely already reporting the income on a schedule E.

For rentals, consider holding properties in an LLC for liability protection.This post does not create a CPA-Client relationship.

As others said, you can look to self-direct your retirement funds, potentially using a checkbook IRA LLC structure as well. 

An LLC with close associates may do the trick as you start out..