Account ClosedEach LLC/legal entity will require a separate bank account and proper books/recordsManagement company - collects rents, pays for repairs, remits payments to holding LLC'stax returns - the entities will require a separate filing if they are not single member LLC's or if you elect a single member LLC to be taxed as a corporation.

I had the exact same situation twice before, and was able to work it out amicably with both initially, but ended up firing one for the maintenance portion since he was doing work that didn't need to be done or not do things that were necessary properly. 

Not sure how LEGAL or expensive or proper it is...

The higher the cash flow portion, the "safer" the investment (given the proper assumptions are used to begin with).Rent Increase Assumption: this will be effected when putting off value add plays, maybe look at 0-1% now as opposed to 2-3%.We are underwriting to 0% rent growth for the next two years. 

So I understand your point of not getting hung up on the numbers but isn’t conducting a proper calculation a heavy decision maker when analyzing and seriously considering a property?

If you have roommates get a proper lease to deal with what happens if one leaves or one doesn't pay rent.

Even as I was working out the deal I wasn’t sure I was working it properly; now I know it’s one of many creative methods of acquiring properties.

If your lender has ANY hesitation on how to structure this properly...then find another lender.

If there were multiple offers on this house, you should be glad nothing major was found and move on.However, just an FYI - if there was not multiple offers on this property (minimum of 5) for a house in Madison proper with a price of $170k, that is a major red flag these days. 

The fact they are complaining online might be an indication the property manager dealt with them properly so be sure to ask the manager for their side of the story.7.