I think sometimes, you can't behave like an economic robot and you've just got to do what feels right, particularly when both the choices are good (just one is better).

Hello, We are interested in either buying an existing or new construction of a warehouse-type, modular construction building to use for a business that would require build out of separate small office sized rooms with HVAC.

There's no need to keep them in the dark.You may also want to have a separate document that states that the lease agreement that they are signing with you becomes null and void if the transaction does not consummate/close.

Is there money to be made by subdividing the land and making 8 separate parcels?

Just wasn't sure if I should include my monthly management as part of the equation or as a separate line item.

Instead split the rental income 3 ways or consider a Family Limited Partnership.If you have a business, always have the real estate held separately from the business.Feel free to ask on the other tax matters.

My actual rentals will sit in a separate LLC that will elect as a partnership.

Are each unit within a MFH metered separately?

This is a HUGE discrepancy and certainly makes the difference between positive and negative cashflow.If the utilities are $556/month, I'd assume the units are not separately metered OR the owner pays electric on a lot of them.

We each contribute 50% of the funding and then I have a separate company that does all of the management.