Any advice on how to structure the partnership and/or better ways to invest the $40K?

Governance over IT should include:  An effective management structure that encompasses proper responsibilities and authorities;  Documented accountability that provides clear reporting lines, clear expectations, and the use of authority to achieve compliance with policies and standards;  Strong oversight by the board of directors;  Documented board approval of written IT policies;  Senior Management having appropriate responsibility to ensure integration of controls; and  Security Officers having appropriate authority to respond to security events that occur. 7 “Mortgage Servicing Rules under the Real Estate Settlement Procedures Act (Regulation X).”

I don't need numbers to go to the concept to structure the deal.It's seller financing, he'll have cash flow he can use that to accelerate his other loans if he wants to.

Gross Rent of ($33,900) is much higher than actual collected rent $27,782Expenses (repairs & maintenance) appear elevated for a structure built in 1999.

Especially if they want to get into real estate.Commercial Investing - It is possible to structure a commercial deal so that you actually get paid to do that deal.

How do i go about structuring a "fund" or LLC using multi peoples money?

Then you must know how to structure the contract so it will appeal to a real investor.  

Hi @William InfantesI have done them for 30 years, and with proper structuring, and payment on time, I have yet to have a loan called due.See http://www.biggerpockets.com/search?

Do you plan on making significant improvements to the structure/units?  

From what I’ve learned there is a lot of different ways to structure a Real Estate deal, Market a deal, and ways to market to find the deals.