Do you both co-sign on the loan and simply have a contract that outlines how the cash-flows, capital expenditures, capital gains, etc. will be divided?

The process is fairly smooth in terms of actually bidding online, but you must follow all procedures as outlined on the site for them to look at the offer.

If you create an LLC, for instance, where you are one of the member-managers, and you purchase property under the LLC, then as an owner you are entitled to distribution per your operating agreement (which outlines the split and distribution.)

Then outline some long shot that can and most likely will severely hurt a seller. 

Nexus in this sense is different than "conducting intrastate business" as outlined in the code section provided by Broad.If you can get a written guarantee from Broad Financial that you do not have exposure to CA Franchise tax, and a pledge from them that they will cover any penalties that may occur if the CA Franchise Tax Board does come after you, then establishing a bank account with an out-of-state bank may work for you. 

Outline all property management fees / expenses and who will handle + how things will get repaired. 

You are committed to it.Statutory disclaimer: there is much more to this than the general outline above,  so keep that in mind.Good luck, Jim 

Account Closed yes they do other wise it could trigger a "due on sale" out lined in the mortgage note.

The action items you have outlined are a work in progress!

The expense will then become part of the basis of that property.That's the technical answer.Realistically, if we're talking about a small amount for Lost Earnest Money or inspection, many people either roll that into the basis of whatever property they buy next, or expense it as I've outlined above.