There's no point in giving up equity unless you are gaining a distinct advantage with using this partner's money. 

I’m just wondering if there’s a danger or conflict with that.

Here's the real issue:  "Wood rot from fungi is dangerous because of how quickly it can consume the bones of a building once it has come into contact with them, destroying the strength of lumber and in turn causing cracks, leaks, and overall structural damage." 

That seems simpler...but maybe it violates the notion that the holding LLC is actually distinct from the child LLCs? 

I probably know just enough contract law to be dangerous, but I'm pretty familiar with real estate contracts (and have a few textbooks I can check as reference :), so I'll try to answer these...

Do not invest in any city on Neighborhood Scouts’ list of the 100 most dangerous US cities.Low operating cost - High operating costs can turn what appears to be a profitable property into a money pit.

Cash returns have two distinct aspects that are intertwined.1️⃣ The ability of the asset to generate free cash flows (Operating Income) 🔼2️⃣ The amount of cash available to investors                ➡ Operating Profit                       $376,453               ➖ Mortgage Payment                  $280,511               🔀 Cash available to Investors       ($4,058)3️⃣ Cash-on-cash return               🔀 Cash available to Investors      ($4,058)               ➗  Capital Invested                  $1,407,000🛅 Cash on Cash Return 💯                           (0.29%)This calculation enables investors to compare the returns of different real estate investments and gain an understanding of the profitability of the investment 💡 .Key variables influencing cash on cash returns. 

There’s nothing specifically distinct about that area that would promote “LGBTQ Releastate.”

Don't wait and try and deduct from his deposit at the end, that is a dangerous game to play as most judges won't allow it - but then again you are in TX!

The distinction is if the property is intended primarily to be held it is a real asset and treated as such with eligibility for 1031 and capital gain treatment.