Its essentially an insurance policy.

Thanks everyone for all your wisdom there is safety in multitude of councel 

Just trying to err on the side of safety Thanks in advance,Eric

It sounds like he just wants to genuinely help the both of you succeed in anyway that is necessary, given the fact he essentially brushed off the idea of a partnership agreement.

Essentially, all income made by your LLC (your rental property) will flow through to your individual income tax return.

My investing strategy is essentially the basic brrrr.

If you want to, I would recommend reading this article I wrote that has some more tips on it: https://www.biggerpockets.com/blog/2014-12-23-investing-out-of-state-essential-items-to-vet

As a fire protection engineer, I can offer a broad range of assistance for fire / life safety considerations that BP members face.  

I wrote an article about it a while back you might find helpful: https://www.biggerpockets.com/blog/2014/12/23/investing-out-of-state-essential-items-to-vet/

The ones I know of so far are (please correct if wrong):5% TaxOption for the city to inspect for code complianceOption for city to inspect for food and safety complianceSomeone associated with the property must live within 50 miles of rental