We are just starting out.We bought a rental house, a 3-family multi, in July 2012.Upon suggestion and explanation (which may not have been entirely accurate) we formed an LLC for the purchase, and to hold the property.We are both equal holders of the LLC.It was set up as a "pass-through" LLC, as the attorney explained it.Rental income is 2300 monthly total.

Have read it numerous times.And years back I wrote a guest post on BP about tax liens.

Thank you for your explanation.

We currently own several businesses and numerous residential and commercial properties in and around Austin and central Texas.  

Of course, it is broken down into what was paid for taxes, insurance, principal, interest, and the various other fees like appraisal, title insurance, inspections, etc.Hope that helps clear up my fubbed explanation :)Kelly

I got a bunch of calls from angry people demanding an explanation.

But he shouldn't get any equity stake for the management.Have a look at this thread:http://www.biggerpockets.com/forums/517/topics/84860-amatuer-investor-seeking-partnership-on-creative-termsToward the bottom I wrote an explanation of how the equity gets split.The mere fact your "mentor" suggests you should put down the entire down payment and he should get 50% of the ownership makes me HIGHLY suspect of his motives.

So, the 200 would be added to the denominator, right:1000/5200 = 19.2% DTI.If he's in the red, then it would be added to the numerator?

Since you have been involved in the gentlemanly sport of hockey, I think you would be well suited to withstand both the physical and mental abuses heaped upon property managers.All kidding aside, commercial property management exposes one to numerous issues that will assist you in real estate investment.

While I've bought and sold numerous properties over the years I have trouble getting up the courage to buy creatively (sub2, lease option)...probably could really expand if I did???