This is how you avoid liability, not by filing some papers. 

A $40,000 home may have better cash flow on paper, but it’s likely a dump in a poor area of town.

I am willing to break even for a vacation home, but if the property breaks even on paper, that stills scares me. 

This will give you an idea of what monthly payment you can afford on paper.

A less expensive property (eg bad area, house in poor condition) may be less expensive to purchase or even look better on paper, but in reality it is not. 

Once you have more than 50 units, it is like death by a thousand paper cuts with the minor maintenance calls.

, or does it LOOK like an office that he's only in for 5 hours a week (few personal items, just a place he pops into 1-2 days a week, in this case the keyboard being dusty might be a good thing... empty trash can, no random papers floating around...)? 

Layered entities can be tricky as most lenders will want to see a paper trail to show you have at least 25% ownership. 

Those rates are for A/B paper but still coming down and margins on the MBS looking a lot better.

Usually the first few years you’ll get a paper loss, so no taxes to pay, but once you show a gain you’ll have to pay.