@Emma RossThe great thing about partnership's is that you both can agree to any manner that you want to split profits/losses.Property managers normally get 10%.

I have been meeting with a local investor who is also a real estate agent, and he's mentioned partnerships. 

I’ve seen many very complex asset protection strategies, but often times it’s about breaking things down to what is most functional - if your plan is too complex and you start making mistakes, then you aren’t really doing yourself any favors… 

I am successfully involved in such a partnership now.

We are trying to figure out terms to put in a partnership agreement between us. 

I believe he has a lot of different partnership's though, so the info that @Ned Carey mentioned about not commingling monies from different companies probably makes sense in that context.I like the idea of a checking account, a savings account for security deposits, and a savings account for repairs, capex, vacancies etc. 

Incentivize them in a way that works for both of you (fee, partnership, whatever).I hope you can find the answers to increase the revenue and reduce the expenses so you can keep all these properties. 

Should me and my partner create a separate LLC with 50/50 partnership or have two separate LLCs?

With a good PM in place you could make any property function properly for an out of state investor.

The partnership can end after home is sold.