Would this be a separate contract or would we be better off putting the property into an LLC with 50/50 ownership with a operating agreement that explains distributions and exit for the investor.

So you can sell the upper or lower unit separately than the other and you just split expenses for communal areas.

2) After I have EIN on LLC, am I required to file tax return separately (separate tax returns for SSN and EIN)?

I was reading about the interest tracing rules and it seems like if I do a cash out refi (even on a primary residence) and then put that cash in a separate investment banking account, I can begin writing off interest from the investment. 1) I wanted to see if this sounds doable, and if there is guidance on what I can do with this. 

I looked up in the county records and that entire block is owned by the Housing Authority, so how are they separating a few buildings out??

And then pull out a Commercial loan of 100K to be split into 5 separate flip n fix properties.Example Scenario: Property Cost 100KHard Money loan covers 80% and we still need funding for the remaining 20%.For the remaining 20% we pull out another loan.

The Taxable Value is uncapped and equated to the SEV upon a sale or other transfer of property ownership, with limited exceptions.Once you know the Taxable Value, you can look up the property tax millage rates, which each city & county sets separately (with voter approval).So, yes, it is very possible for property taxes to jump from $907 to $3200 if the seller has owned the property for quite some time.You can use this tool to estimate your future taxes after they are uncapped: https://www.michigan.gov/taxes/0,4676,7-238-43535_43540---,00.html

Not sure if watering helps or hurts, but your tenants are not going to water.Is everything separately metered?   

I agree with your logic, the rent increase is irrelevant and separate from the renovation.

That means there will be a separate budget bill later this year that will go through reconciliation.