It's another tool in your RE investing toolbox, and you need to learn how it complements the other tools you have and how to use it properly.Plus, you should separate your asset holding entity from the active operations/property management entity.

They were each operating at the 1.2-1.4% rule.

For tax purposes, is it better to have my name on the operating agreement, or my business' name?

I ran the numbers, see below - the expenses are almost too low, so first thing will be to do my due diligence.On the plus side she is not in a rush, the property won't be listed for a while (if at all, if I can get in quickly with a solid offer).Purchase price (est) $775,000Units 13Annual income $112,000 (assuming 7% vacancy, all units currently leased)Operating expenses $39,000 (all electric on separate meters, heat is electric.

My further research indicated that any deficit in return on original loan amount is considered a "non-business bad debt" treated as short-term capital loss, but foregone interest is excluded (because individuals operate on a cash basis). 

When developing a pro forma for a storage facility, what percentage of gross income should be estimated as operating expenses?

On a smaller scale, just call a local broker (better: call all top players, hopefully there are 3-5) and tell them you have 7 properties that you want to place in their rental program, and want details on how their rental management operation works.

The buyer oversees all management, renovations, and operations.

Many are well represented by sellers & turnkey operators here on BiggerPockets. 

Feel free to reach out for any info on syndications & different operators & asset classes.Best of luck to you.My brother plays pro baseball & I’m trying to get him more into real estate!