The boilerplate legalese you see in contracts isn't because the actual terms can't fit on a single page, it's because "what happens if you disagree about stuff" is complicated and you want some protections.Plenty of attorney's will be happy to review your contract for a few bucks.

It is unnecessary and will only complicate your taxes.

I see two primary questions that you are asking:(1) Does investing in US real estate make sense for me and my wife considering there will be downward pressure on ROI from complicated tax regimes?

I recommend the latter, though the fluidity of offensive odors often complications removal to the point of fiscal irresponsibility.

I know how to read an abstract and interpret complicated title insurance issues, I understand local laws, closing statements, and taxes.

It sounds like both need to be stabilized so they will need unconventional financing.Putting the loans together would probably complicate the deals rather than help.What's the vacancy and NOI of both properties?

Each room is pretty simple:Living - 1 ceiling fan/light on common switch, 1 switch to porch light, 1 receptacle on each wallEach of 3 bedrooms - 1 ceiling fan/light on common switch, 1 receptacle on 3 of 4 wallsBathroom - 1 switch for vanity lights, 1 switch for exhaust fan/light (I am going to daisy chain an led light for more light in shower), 2 GFCI'sHallway - 2 switches - one operates a light, the other used to operate an attic fan which is now removedKitchen - probably the most complicated 2 lights operated by single pole switches, currently 9 receptacles - 2 general purpose, 3 counter height, 1 for dishwasher, 1 for refrigerator, 1 for cooktop, 1 for oven.

I am torn as to whether to recommend that route or not, sometimes when you end up in a complicated situation,  you are just forced to figure things out and the payoff can be substantial.

This is too complicated for me due to the partnership, but I'd want a tax person to sign off on the strategy.

Don’t make this more complicated then it is.