I always like to do this just to verify that the pro forma and projected rents are realistic.  

I understand that argument but except capital gains which one makes more sense form a cash flow point of view ?

Clients receive the amount on the pro forma provided .

Form a LLC that you are both members on.

I would build a line in my multiyear pro forma and run the analysis both ways.

Then go to the lender and ask how the loan and terms would look on you buying that property (that will open up the conversation) Be very honest with all finances and facts pro forma as they will know if you more forward.

Do I form a limited partnership with an agreement specifying these details?

Start with a pro-forma, find a mentor or partner, find an architect.

However, the account fees, transaction fees, asset registration, check fees (some custodians even charge for both incoming and outgoing), etc. form a good chunk of money eating away potential profit. 

Did you form a separate Corp or held it within your Canadian entity.