If I were the neighbor, it sounds like I'd be the only one bringing money to the table so you could get something you want.

 - flipping is a job, stop flipping and stop making money.  

I had a mentor who stressed "you make your money when you buy"; the next place you get, be sure to haggle big time - and walk away if the price is not low enough.

You dont have to do the deal to make money.

That likely means that they are not good with money management which you are likely expecting from him.To answer your question, if you are doing long-term rentals, the LLC taxed as a partnership is likely the go to route.Best of luck.  

I was drawn to real estate as a way of investing money I have saved up (around $130K with additional funds to leverage out of a 401K if needed), and potentially creating reliable cash flow over the next 10 years. 

If you have a chunk of money to get going I'd personally buy the biggest thing you can if you don't I think house hacking into a 4 plex is great. 

Purchase price: $130,000 Cash invested: $9,000 Sale price: $185,000 I did not have the knowledge then to keep the property and pull money out to complete renovations to another property we purchased a year after this one that required a complete overhaul.

Personal money How did you add value to the deal?

They would be putting in some money and their service as sweat equity, and we would be putting up money and my wife’s services.