Either work with a CPA and an attorney very experienced in international tax law to draw up the pro forma financial statements, the entity documents and the agreements with your partner or come pay me $550/hour to get you out of trouble with the IRS later.

Also, make sure there is a capital improvement expense (example: the roof is going to have to be replaced as some point, this could eat all your profit if you don't account for it in the pro forma).That being said, my partner and I are discussing if we should offer something like this in the areas we are currently operating ie Des Moines, Omaha, and Iowa City.

Do they require you to form a business entity like an LLC to which they will lend?

Hello,Most commercial properties including multifamily are posted with pro-forma statements and unreasonable asking prices.  

@Hector Morales and @Jose Brandao, this question is asked repeatedly in the forums, both for MA and for other states. 

I would form a Florida LLC and use a registered agent there.

My best recommendation is to form a great relationship with your cleaner and take care of them.  

We want to form a partnership but want to do it smartly. 

For example, if the income flows to Schedule E it will not be considered self-employment income and therefore, not form a basis to set up a Solo 401k.You would need to be reporting self-employment income (such as income reported on Schedule C) with no full-time employees working for you, etc. in order to be eligible to set up a Solo 401k.  

They form a special entity (usually LLC) called the Exchange Accommodating Title Holder (EAT).