There are a lot of operational expenses that easily add up to 40-60% of the rent.

It a turn-key operation.

My understanding is AT LEAST, if you're going the LLC route, you need to file in every state.You create the entity in any state and then foreign file everywhere else.B&H investors need a business license to operate the rental(s), but flippers may be different per state.

Here are some of my initial thoughts:After you pay a manager to run the operations, what is the net profit?

I suggest you Google "APOD", which stands for Annual Property Operating Data. 

Such a vehicle is designed to operate from a tax perspective exactly like any other IRA, and simply opens up your investment choices to include things like real estate.  

At that point you have a general partnership and 1065 obligation.If you're doing that, it may be advantageous to take it one step further, form an LLC and write your mother into the operating agreement as the functional equivalent of a limited partner. 

I have a rough draft of an operating agreement that I drew up with my partner and I would like to have it reviewed.

Operating agreement for LLC5.

Does the 1% or 2% Rule come into play before subtracting operating expenses from monthly income or after?