We did require a home warranty which we have already had to use (within 30 days of ownership).

If so, will we only be able to deduct the losses based on their percentage of interest in the LLC (i.e if the each have 45% ownership than we can only take 45% of the passive losses against each or our W2 incomes)? 

So, you will need to check the addresses against the county assessor website to verify property ownership.

@Denise Parent, Like everyone said, if you've lived in that for two out of the 5 years prior to sale you'll be able to get $250K of profit tax free (your husband won't meed the residency or ownership test). 

You could learn how to Masterlease a building from an owner and sublease to your tenants which creates cashflow without ownership.

In this example,  my friends IRA does not get any benefits from ownership or depreciation, so we keep those benefits.

When investing in a property using a partner, how do you split the ownership/equity in the property if the other partner provides all the cash while the other partner provides all the knowledge and hustle?

@Jordan Noble  I don't want to speak out of school, but the question on your splitting ownership on the property is best answered by a title agent or real estate attorney, but I think you could have a Quit Claim Deed Prepared adding your partner as Joint Tenant (I would double check this is the best way to hold title). 

They set the budget, which is then split up among the units depending on ownership interest.

I don't think ownership changes hands unless they abandon the property.