For a few tenants where the water bill is part of the overall utility bill I provide them with the water portion so they can see I am not making up charges, if they ask. 

Should this interest be figured in my expenses before we split profits or should the loan interest be paid out of her portion of the profits?

Having a license just makes everything easier...You can get a real estate broker's license in a state that doesn't have a residency requirement like California...http://www.dre.ca.gov/Examinees/OutOfState.htmlYou can then take the State only exam portion of the Broker's exam and be licensed in two states.

That is a seller credit/concession, along with any deposit but remember to have that money on hand as it isn't yours but it's still a credit.You'll get the prorated portion of taxes for the year.  

I've been most of the BRRR already except I've never done the Refinance portion of the plan. 

( deferred maint )your monthly portion of mortgage payment ?

We have been working with the city and sending our GC down to the city planning department to see how we can make the second unit a 2/1 and a portion of the garage a 2/1.

We want to use him for a portion of the downpayment/rehab costs and give him a return on his money, but not use him for a third borrower.

I'm most excited to learn how to do my own repairs and definitely plan on doing a good portion of the work myself - the knowledge gained from that is essential. 

I would suggest that if the rented portion covers all of the expenses that you take your income and put that towards another property.Good luck!