Legally, you're only allowed to take on representation in areas of your competency and it sounds like residential representation is not an area which you nor have access to the data and systems that will allow you to professionally arrive a pricing and the ability to market such a property. 

If so, I will do so as I am not confident in their ability to pay the rent. 

For a hold, I would also make sure that your rents are on target with at least 3 property managers and see what their absorption rate is (ie how fast it will rent).In your reno, I would recommend you budget to put in another full bathroom, that will help secure your ability to rent. 

lenders just don't want or like landlord business, so they make nonsense up to turn away the landlord business they do not want in a way that does not violate the Equal Credit Opportunity Act (it is perfectly lawful to discriminate in mortgage lending based on "lack of time travel ability" as that is not a protected class).

-  to be financially successful in my opinion it requires integrity - honesty and the ability to be able to keep your promises to sellers -So many MOTEL trained - so called investors/wholesalers just don't know what they are doing - they don't understand contract engineer - making full disclosures............... they just want to rip off some fast equity from sellers. 

Ability and willingness to sign guarantees for loans may play a role in what percentage a particular member may want to take in the LLC. 

I'd say that is just being scared, they often point folks in the right direction without a bill, you might get limited advice (better than none) to guide you if you really can't afford for them to do everything, they can look  over something and point out any issue, tell you what to do or fix it telling you your benefit and the cost.

There is nothing fishy or illegal about this the ability to rent it.Now what is fishy is that you said she is renting to her sister.  

My partner has much more financing ability then I do and we agreed that she would help finance our first property or first few to help our business get started.My question is; If I find a multifamily that I want to purchase and she lends me the money for the downpayment, will I still be able to get a loan for the property?

In essence you're exchanging the principal payments for the ability to reinvest that money into another purchase.Think about it this way - with the mortgage your ROI is 4.5% (cost of debt), BUT if you want to withdraw your own money you have to re-qualify and pay the bank to access your equity.