It could be as complicated as  a tank,  several pumps to a leach field and an alarm system or as simple as a gravity fed tank and leach field. 

I'm hoping to start investing in real-estate with my friend who is aa green card holder.Currently, we are planning to get a house on our name and then we ll rent it out.We also thought about owning it first on our name and then transfer it on LLC name which we plan to form later on.However, my status as an H1B holder does complicate things.

Just one example and you may not have problems where you invest, but just letting you know that if anonymity was your goal and its going to get a bit complicated, you are essentially paying $600 per year unlimited entities registered agent and they make sure it is set up right and titled properly, it could be worth it.

I can tell that your understanding of taxation is not wrong at the basic level and that is normal as taxes are confusing and complicated. 

Not full time of course because I will be going to school, which may create more complications. 

The more complicated ones would include garnishing the debtor’s bank account (how did you pay your rent?

Plus the fact that I plan to live in the house also makes things complicated. 

Also insurance becomes more complicated so make sure you are speaking to an agent who understand who you are trying to do and how to provide you with the right coverage.

I would recommend making as many connections as you can in the Charleston area if you plan to move forward, as the market is incredibly complicated at the moment. 

It's not an easy process, but with the right team you can make a complex process not turn complicated and be really satisfied with both the journey and results.