It's completely dependent on negotiation -- between the operating partners and the capital partners.Typically what you'll find in similar situations is either an LLC or an LP taxed as a partnership with a strong operating agreement in place that spells out income/loss allocation. 

If they violate this, we give them a written notice to comply and they have 7 days to fix it.

Our company will also be operating as a relocation real-estate service helping our many large corporation in the Seattle area find housing for their employees relocating to the area which will benefit both the property management and sales division. 

I also have reserve account to operate properties vs using flat percentage eat mo for items.

I decided to work as the manager for several months to really learn the day-to-day operations.

There are a lot more efficient cheaper operating systems on the market to choose from.

If you remain resident in Canada, in augmentation of Eamonn's advice, I would suggest you consult with a CPA - and possibly attorney - experienced with Canadian tax law and business organisation when holding foreign assets.Having your U.S.A. business (and assets/properties) be held and operated within a U.S.A. corporate entity will provide you with control over the repatriation of retained earnings.  

Hi Alex,I don't operate in your state but I'm a former insurance company adjuster. 

I'm curious if people are typically using operating (no capex reserves) or free (with capex reserves) cash-on-cash returns when evaluating deals as it relates to the 10-13% cash-on-cash minimum that many target.

Many are well represented by sellers & turnkey operators here on BiggerPockets (myself included) The most popular markets are ClevelandToledoMemphisBirminghamKCIndyDetroitEach of these markets is popular with turnkey investors because of the low barrier to entry, high rental demand & high rent to price ratio.