Yeah, I guess it isn't any different from what anyone who operates a normal business such as a Dominos franchise has to deal with.

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

You need to have a really strong operating agreement.

And for the $1600/month question...think monthly operating expense vs occupancy rate and pricing.

Landlords that operate their business through avoidance due to fear of vacancies usually lose more money and retain low quality tenants.

You’re operating in a legal grey area or you’re breaking the law (depends on the state) and an agent isn’t, because they’re licensed.

If your mortgage is ~960/mo and you are getting $1200 then it is currently operating as a poor investment.

If you guys are looking to rent it out then you would need to run a pro forma factoring in all of the operational expenses associated with the property against the rental income ( amortization, economic vacancy factor, insurance, property tax, reserves for capital expenditures and repairs, etc.) and see if it is actually a profitable cash flowing investment.

My question is, what would be the most efficient way to operate this for the most tax advantages/breaks as opposed to claiming it on my own personal taxes? 

It says"Over a portfolio, over time, your operating expenses (not including financing  costs) are going to be approximately 50% of your income"Notice that is Does Not say "every property will have exactly a 50% expense ratio."