Also, if you live in CA and manage the LLC from CA, chances are you will not be able to avoid the high CA LLC costs, even if you form in another state.I think what you're proposing has a lot of elements to it that you likely should be discussing with a CPA and attorney your options and the consequences to each. 

@David Ripplinger Fannie Mae typically allows you to use proposed rental income when purchasing a property to offset the new mortgage payment. 

@Adam Vadnais there was a recent post called “Raising Money Private Proposal Package” in this forum with a nice response about how to prepare the proposal.

@Dustin RuffI'll say, I've never heard that even proposed and first inclination is no but only an electrician would know exact code or could check with a state inspector.

There has been new legislation in LA regards notice and where and to whom it will apply.

She has also proposed me going into the property with her at 20% and her business will rent out garage from me.

The deal you proposed would NOT make sense if you want cash flow.If you're looking for appreciation in the Taunton market, obviously that's a gamble. 

As far as dogs go, breeds matter and the type proposed is a good one for the landlord. 

My question is this how would one propose 1) A new rate and secondly, if the lease agreements are now month to month, here in Minneapolis are their guidelines in place that would prevent me from increasing this rate to a more landlord friendly price point.

Depending on what you're trying to accomplish, the route is probably going to be either a TIC with your partner or a single LLC taxed as a partnership with you contributing the property for unit interest and your partner contributing cash or services for unit interest.What you propose above will most likely incur thousands of dollars in legal and CPA fees in year one.