I plan to use a property management company for most or all of my properties, so I expect to use the leases drawn up by the property management company.

@Caleb Godsey Your numbers are correct:However, you are missing CapEx reserves (5-10%) - consider Repairs and CapEx at 10% of rent, your cashflow gets cut in half:Make sure to account for all these expenses when evaluating an investment: 1) Mortgage2) Mortgage insurance (PMI or MIP) or FHA Risk base3) Property Taxes4) City Taxes5) HOA (Home Owner’s Association) Dues and Fees and Assessments6) Insurance Property Hazard InsuranceFlood InsuranceEarthquake InsuranceUmbrella Insurance7) Vacancy Rate (usually 8% - the equivalent to one month a year, or 5-6% if multifamily and/or if experienced, if not use 8%)8) Utilities (you’ll have some or all of these if your tenant is not covering them and/or during vacancy) Water § Sewer § GarbageElectricityNatural GasPropane9) General Maintenance (usually 5%) Upkeep § LandscapingSnow removalRepairsNew Appliances10) Capital Expenditures (usually 5%, higher is the property is old and obsolete, less if fully rehabbed and all mechanicals and roof are new)11) Property Management (8%, even if you self manage, your time still has value and there might be a time when you'll want to be completely hands off or you'll not be able to do it, vacation, retirement, etc.)

So they keep on reacting to the molds (dead or alive)!

Does the partner get a percentage of the rent plus part or all of his money back when we cash out?

I plan to make a contract that states that she has sold the home, or all rights for the home to me, for the $20k + taking over payments. 

One or all of the partners was always on vacation.

I have met a few that tell me they get buyers who buy sight unseen and have 1/2 or all of the purchase price cash as their EMD...

You don't have to do all buy & hold or all flip or all wholesale. 

After tenants leave and you find damage you will of course send them an itemized list of the cost of materials to fix the damage to explain why they are not getting any or all of their security deposit back.

The 50% rule or any other operating expense ratio you choose to use has NOTHING to do with debt financing or all cash.