I am making this my big push, as it is a win-win right now, alongside my property management business.

If you don't want to get your lenders in trouble, pick up a copy of Lend to Live in the BP bookstore for both of you to educate yourself on how to do it the proper way so that it's a true business transaction and not cutting corners just because you know each other personally. 

Let’s just say that this was not a good start to my RE business. 

I have a business opportunity to partner with a friend in purchasing  Property.

He replied that he was working with his management to get resolve in this issue which he agreed was bad business.

I don't want to have to open another LLC and file taxes in another state for business. 

Rather than wasting it or leaving it in a bank account I'm interested in starting my own investment business to supplement my real estate sales.

Create a business, and have a separate bank account for that business.

You're giving them business with multiple properties.  

@Christopher DeAraujo I am in the process of getting out of the business of paying for tenant heating given the volatility of oil prices and having seen 5/20 tenants put their heat up to 78 and keeping their windows open for fresh air when it was -20 degrees outside.