Account ClosedIf you and your colleagues have a tenants in common agreement in place and you and your colleagues own the property in both of your names - you and your colleague should be entitled to report each person's share of income and expenses on your individual tax return instead of filing a form 1065.There are some benefits with this method such as not having to file a partnership return which can cost $$Furthermore - you don't have to wait for the partnership return to be completed before you can complete your individual return.The only possible downside is that you may have to calculate depreciation separately.$1600 a year for a partnership return - I hope that didn't wipe out all your cash-flow!

What are the other cost involved beside the development cost.Any help would be appreciatedThanks

I wonder though if anyone has any advice on how to get into rental properties and make it fair for all parties involved. 

Is there some sort of limition on this method?

I think you are referring to "cash for keys," be it through a formal rent control method,  or through ad hoc agreements with the tenants (cash and free rent for "x" period of time, etc..).

Excited to get involved, learn more, and do my best to help those in the community.

At this point, the goal is to deal with the person, who is handling the transaction and try to get out whole. glad to see my guess of 5k was about right.. that's what I have personally seen on the short sales I have been involved with.. never really seen more than that.. just hoping she only paid pennies on the dollar and is not in that deal like 15 to 25k.. if that's the case I think she is going to lose some dough.

I'm stuck in the mindset that maybe Park City or Garden City would work for AirBnB properties, but is it a method that works elsewhere?

There's risk and cost involved if they have to foreclose. 

If your time is worth more doing something else, then hire it out.If you have someone you can trust to do a good job.....just as good or better than you....hire it outIf you like to be involved and be hands on, then do it ....up to a point.I prefer to do everything I'm capable of myself....if I have the open time.