Some of the concepts roll over to multi family as wellSome costs during operating period including but not limited-Initial Phase-Leasing commission one time for 1st month( if using broker) (depend on broker fee structure)Property mgt fees (depend on broker fee structure)Landscape costsRekeying your house or change locksCleaning property Vacancy Any repairs During occupancy-TaxesInsurance Property mgt fees (not included if you're managing)RepairsRental permit (depends on city)Feel free to ask any questions -Kevin

Do you walk around the outside 1st and look for structural issues or do you go right inside and see the status of the flooring and walls and kitchen?

If a second structure is allowed you might want to consider a modular home.  

I have been told by several Attorneys that you also have to structure your dealings with regard to the LLC to keep an Arms Length approach. 

So on one end of the spectrum, I do deals that would be a flat fee type structure I'm assuming, and on the other end I have deals that would operate like a traditional loan but with a balloon.

So, shelling out $59,000 (the 20% down) results in a negative return, from an operational standpoint, most likely for years to come until rent prices improve to get your investment to break even.

Taxes are based on the difference between your sales price and your acquisition cost (purchase and capital improvements.)You should speak with tour CPA and lawyer to best structure your business to minimize the tax impact.

Shell value or do you treat each one like a SFR and assess its value that way?  

@Colin YounYou should consult with an attorney on structuring the partnership/LLC.This appears to be a partnership as you are looking to split profits instead of a loan agreement where your friend is looking for interest based on capital.

As long as we’re not getting divorced.I know that there is a difference between legal and tax structure.