I personally collect a security deposit and get the damage protection waiver for added protection.

Unfortunately, even without a lien, HUD can still collect as you signed a promissory note.

. $550  / mth * 8 unit = $4,400 * 12 mths = $ 52,800 GRI  ****not $53,800****The formula for CAP = NOI/PriceNOI = [GRI - V&C loss + OI] - EXP  *****You did not subtract for expenses to arrive at NOI nor include a vacancy and collection factor****Assuming expenses are 50% and 100% occupancy (which 100% occ is not realistic all the time).

Either define a set period of time that you will serve as a manager for no cost and then collect xx% of revenue as a management fee before splitting profits.

Only one bank account needed, but you'd have to track income & expenses to do transfer and year-end accounting.As @Nathan Gesner mentioned, not really worth it.You two could also open a joint bank account for collecting rent and pay expenses, just be sure to track everything.Do NOT do what @Paul De Luca stated about transferring title!

Would 1st lien position and rights to collect the property if I default be considered skin in the game? 

Have you ever had a pet cause more damage than the fees you've collected?

The collections agency we use currently says that without an application they can't do anything.

Conceal carrying is just another piece of clothing to get hung up on and slow you down.

I will still collect a W2 from the business (I’m still an employee) as well as K1 for a percentage of profit.