My CPA advised me to split the generic costs such as property tax and water bills equally between both units, which seems reasonable.

Is your DSCR ratio greater than 1-meaning are you cash flowing (according to the lender's criteria of mortgage, property taxes and insurance (and HOA) if applicable).

While we do not see income from these properties and are not managing them we do have a significant amount of depreciation and losses that have been assigned to us and carried over from the past couple years.I am invested in some growth/equity focused projects already and am specifically looking in reliable income focused strategies that are tax efficient provided the losses I have from my family.

This loan type looks at the rent currently generated by the property OR the anticipated market rents (determined by the appraiser) and compares it to the monthly principal, interest, taxes, insurance and HOA (if applicable).

there are many tax complications?

Meanwhile, with the person who foresees themselves mantaining their W2 job, this entry step is not necessary and truthfully should be avoided.

Over one million apartments were “abandoned” to the tax authorities in NYC in the 1970s by landlords who saw no way of ever turning a profit or even selling their property for more than they owed in taxes.  

I think funds offer more flexibility, but why not take advantage of the tax benefits of a REIT structure? 

Questions I'd have if I were in your shoes would be based around how the CAM expenses, management, taxes etc are going to work. 

I would like to set it up so that I can basically hand reports with receipts to my tax guy and be done with it.