For example, net cashflow of $500 per month and $500 equity increase from mortgage payments, which equals $12k per year.

Drive by the higher end sold houses exterior renovation usually equals what the interior renovation looks like, check the MLS or even zillow sometimes will have what the condition looks like.

Any ideas for helping the 3rd partner get to equal ownership? 

Look for deals where your equity is on equal ground to the LP.

Equally, if you decide you don’t like the property/neighborhood after all, that your commute is too long, or that you want to get your kids into a better school district, you have the flexibility to do that.

I treat them with respect as if we are equals  and I always fix their rentals up as needed .

Dues need to be reasonable for current owners and resale - budget needs to work and the overall care of facility is vital.

If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.6.

Yet if you study what happened during the previous recession, you'll learn that not all markets are created equal.

Assume you start out well and everyone is an equal partner, they are showing up for meetings and actively voting on all major decisions.