We are in the process of hiring people and want some advice on structuring our new 1099 clients/ contractors/ employees for lead management, acquisition and disposition.

That’s a great step forward.If you are considering a turnkey property, it’s important to understand that the convenience comes with a price.

People have been renting out financed properties forever.

Why are people answering this? 

You intend to buy 40 units and you need to use other people's money for $3,000???

If I'm understanding this correctly it mainly makes sense if you either plan on holding the property or doing a 1031 exchange in the future?

People make money in every approach to RE, and people also lose money in the same way. 

I ask this question because I suspect at least 90% of people who post on BP about entity formation or transferring properties from their personal name to an LLC cannot articulate the risk they believe they are protecting against.

@Jason Sung, I would certainly get a few opinions from multiple people.  

 - I think you understand numbers.