I can see a situation where you and a person very experienced in property management team up and form a company to acquire assets and each of you get some sort of split of the revenue (and expenses) of that company. 

The concepts of home and hearth form a deep, integral part of human psychology.

Estimated Pro-Forma (based on market data of similar houses in the same area)3. 70% rule Cheers, -Dylan Mathias

Have a pro forma budget that shows the capital you will put in, and the resulting financials of the building that you're expecting.

How does taxation work in this case if we both form a single person LLC? 

I guess my question is, what is a good constructive way to form a partnership with him, are there legalities?

But do make sure to build that into you pro forma. 

Townhomes can appear in a pro forma to show a lower return, but holding long term returns are much higher than a single family home. 

From there you can run your ow pro-forma, compare to similar properties, see where there's opportunity to decrease expenses to up the NOI, whatever. 

Do not form a Nevada LLC if you are doing business in Illinois.