Contactless (online) payments is a big deal given the current state of things during C19, especially with the right platform that allows your tenants more options (ie. debit/credit card option, ACH payments, or even expedited payment processing, along with rent/payment due date reminders, and the ability to report positive payments to TransUnion in order to give your tenants' credit scores a boost; this acts as an added incentive for them in the long run as well).

You are going into business together; so, it's common to jointly sign documents.The biggest risk challenge is putting your friendships at risk. 

I understand that there is a lot of play in the joints of this ranking scheme but the consensus is that A represents the highest quality neighborhoods whereas D represents stone rough areas.   

Do we need to pass it through payroll (where it will be taxed accordingly), to our joint account, and then route it to my business account?

I file the tax return jointly and my wife is Home Maker.The question is:1.

And it could cause head aches, not to mention keeping it protected an clean.

You need an attorney (or several attorneys if you want to do estate planning too) and you need an accountant.You seem to be confused on the difference between a partnership and a joint venture.

Are we setting up a joint account?

Joint venture, Limited Partnership, etc?

As @Andy Freeman mentioned, I think 75% max LTV is typical, so you should be easily able to get $40k as long as that isn't more than the "actual documented amount of initial investment…"  plus costs associated with the new loan.I'll also add that it's important that the person/entity who is seeking the delayed financing exactly match the person/entity who made the initial purchase … e.g. you can't get delayed financing as an individual for a purchase you made with funds out of a joint bank account from a partnership/LLC, even if you're a member of that partnership (just a tip from experience :-p)Good luck!