@Ben CohenNow these numbers are starting to look like a rental property :)That, and I realized your method of calculating Cap Ex is MUCH simpler than the one I've been using for 15 years, thanks for that!

I have read about getting others to help you with investing in properties, but I'm a little shaky on the concept. 

@Dan Heuschele concept on having 25% equity and having 100% equity is spot on.As far as in practice, as you obtain more rental properties and have income coming in from those rental properties a mortgage lender will look at that income and it will be added to your regular income.

Not the favorite concept for residential lenders (no W-2 income). 

With the K-1 (think of it like a 1099 or W2 form), the individual can file their individual tax return.With family, there is the concept that you should be more formal since its too easy to get into arguments which have lasting effects. 

Also if you guys see anything that looks funny or know of a simpler formula I could use to evaluate properties please let me know.I scheduled a showing tomorrow.

Whoever told or suggested to you the 0 money down concept as it pertains to notes is wrong or misleading at best. 

Its much simpler to have separate mortgage contracts.

Make sure with your loan officer that they can refi immediately with out seasoning...Might have to use a special loan but it's not a new concept options are out there and cash gives you leverage to get a deal done.

Around me, a sprinkler system would be the same concept.