I don't have any debt, and my girlfriend will either sell her condo here in Denver to pay off her debt, or continue to use the monthly rental income to contribute towards her personal debt payments. 

There's not even a way to make additional capital contributions to an inherited account if something happens to the property and you need additional cash.

Or will you structure your entity so that the equity reflects the Capital contribution?

Just to contribute something of my own to the discussion, here's a few books I've been reading:- Mastering the Market Cycle by Howard Marks- Against the Gods: The Remarkable Story of Risk by Peter BernsteinLike some of the other recommendations, they're not real estate specific, but I'm finding that getting a broad understanding of financial history is helping me find my footing in the multifamily world. 

Do you contribute more than a company match to your 401(k)?

You do not want to go into repairs and come to a point where one party stops contributing or wants to sell right away because of an emergency.

Most private placement deals I see have a LP/Sponsor waterfall that incorporates a Preferred Return, whereby the LP gets a stated rate of return before the Sponsor gets any money.The Preferred Return can be based either on the Initial Capital Contribution or it can be based on the Unreturned / Unrecovered Capital.

This has contributed to the overall cost of the policies increasing. 

. $0 actual cash, $3k used from equity)Repairs$2,600.00Holding Costs$0.00Down Payment$18,250.00 2nd mortgage to cover downpayment$0.00All Personal Contributions$20,850.00Total Investment$367,600.00Total Loan Amount$346,750.00Number of units1Average Rent per unit (CELL E19)$3,000.00PRIMARY MORTGAGETotal Loan Amount$346,750.00Interest Rate3.300%Term Length of Loan ( in Months)360Interest Rate per month0.00275Monthly Mortgage payment for 1st Mortgage$1,518.612nd MortgageTotal Loan Amount$0.00Interest Rate0.000%Term Length of Loan (in Months)30Interest Rate per month0Monthly Mortgage payment for 2nd Mortgage$0.00Total monthly mortgage payment(S)$1,518.61Monthly Insurance$104.17Monthly Property Taxes$360.00Other Monthly Expenses (HOA, Utilities, Maintenance, Etc)$940.00Total Monthly Expenses (not with mortgage)$1,404.17Total Monthly Expenses (with mortgage)$2,922.78Other Monthly IncomeTotal Gross Monthly Income (Rent)$3,000.00Total Annual Expenses (not mortgage)$16,850.04Total Gross (Most Possible) Annual Income$36,000.00Net Operating Income ($ left to pay mortgage)$19,149.96Cap Rate (for multifamily/commercial)7.00%VALUE BASED ON CAP RATE$273,570.86Cashflow per month$77.22Annual cashflow average$926.64All Personal Cash Contributions$20,850.00Annual cashflow$926.64Annual “cash on cash” Return on Investment4.44%Section 4: Hybrid Calculator (X years rent, then sale)Total Investment $367,600.00Years Held For2Future Sale Price, Less Closing Costs $550,000.00Total Sales Profit$182,400.00Cashflow over X years (E42 x E47)$1,853.29Total Profit Over X Years$184,253.29Total Down Payment (E7)$20,850.00ROI per year average*441.85% (I think this is wrong...)

I am the contributing partner while the other partner is providing all the labor and footwork on the projects.