K-1 would report each partner’s share of net income and some deductions based on the percentage owned if there was no special allocation in the agreement. 

This allocates a expense on your cash equilivant to the prevailing mortgage interest rates.

The owner may be allocating a monthly reserve and calling it a utility expense.  

I am just wondering how the allocation process will work? 

I'm passing up a match so I can allocate those funds to multifamily general partnership.

I am not big in networking right now due to my business(non real estate related) and spending almost every second of my off hours absorbing information on apartment investing. my family and some close friends are all in REI so I talk to them a lot, we are constantly looking at deals and try to close as many good deals as we can get our hands on right now and asset management on our current properties. my recommendation is first to really ask yourself what are you willing to sacrifice to do this. allocate the time and go out and meet with people in these real estate events.

How would you allocate returns based on these?

These past 6 months and next probably 18 will be the era of people allocating cash into investments that'll create even greater wealth than the last 10 years.  

You should make sure you have a good CPA as well to review the profit allocations, minimum gain chargeback, tax allocations, guaranteed payments (if applicable) Section 704(b) allocations, etc.

What did you allocate for roof,  bath and kitchen gut, hvac, and driveway?