you have to get 3 reports to get something accurate for your investors, give distributions, etc... 

We split it by number of bedrooms rather than square footage.The only push back we've gotten is on heating bills in units with poor heat distribution/insulation.Remind tenants that they are splitting all the base charges which is an overall savings for them compared to separate utilities.

Do I need to do a monthly distribution to my personal account and then pay off the HELOC?

@Glenn PaulsonI agree with @Will Barnard instead of cashing out your IRA and being subject to an early distribution fee, and higher income taxes, you could transfer those funds into a self-directed IRA and purchase the property in the name of your IRA.

You should have a clause in your Purchase Agreement that will dictate when and how EM is distributed. 

If you create an LLC, for instance, where you are one of the member-managers, and you purchase property under the LLC, then as an owner you are entitled to distribution per your operating agreement (which outlines the split and distribution.)

We've distributed our initial round of PPMs, mostly to our network of friends & professional acquaintances, and I'd like to expand this effort and find others who'd be interested

The termination of the LLC and distributions are covered in the OA as well.

I feel there will be a distribution of some kind but since its from Houston it would be hard to say.

How is the risk generally distributed?