Hi Babu,A simple rental property balance sheet will have the following accounts:Assets: Cash, tax and insurance escrow, fixed assets and depreciationLiabilities: Credit cards, security deposits, and loansEquity: Opening balance equity, owner's contributions/distributions, retained earnings and net incomeThere could be a number of reasons that your balance sheet does not balance.

I also have a good w-2, live below my means, no debt, and due to get wage increases in coming years. 

If it's in disrepair and needs work before you can market it - things get rather unfriendly to you tax-wise.Next - what are your travel expenses?

In theory we could buy a house with him and rent it for ten years and break even, pay the debt down, build credit, and later maybe he lives there.

Does anyone actually believe the reported inflation rate or that US denominated debts (worldwide) will ever be repaid? 

For instance, if we had 5 AC units go out, I couldn't cover that on a dime without outstripping my capex and tax savings, but I could probably pay off in a few months.

Assuming you are at 80% LTV or lower, you do not need to escrow funds and can pay your own taxes and insurance instead. 

You will be entitled to a partial 10-year tax abatement from the day you pay for the permits.

Should I pay state tax on the one that shows positive even though the entire portfolio is at loss?

MLO Classification: W-2 vs. 1099: What is the norm for sponsors, meaning do they  provide a W-2 with tax withholding, use a 1099