For 10% of the rent per month, they'll usually handle everything from marketing the home, showing it, drawing up lease agreements, extensions, rent collecting, maintenance coordinating, etc. 

So for those starting out in RE, there is no need to optimize return by going super high leverage. 

Substantial services do not include the furnishing of heat and light, the cleaning of public areas, trash collection, and such.When extraordinary services are provided, the rental is treated as a trade or business and reported on Schedule C regardless of the average rental period.

The SLREIA and Utah REIA meetings have a lot of collective experience.

Just because you can do something does not mean you shouldAs to whether a tenant will actually collect? 

I don't see how they could send a collection agency to you or anything if you didn't sign anything with them. 

Rather than reinvent the wheel, I wanted to tap the collective knowledge of some structures to have an investment model for buy/hold without locking my own money up.The pain point is the exit.

The best way to find them is to send out mailers.Some good lists to target are Absentee Owners with Equity, Seniors with Long-time Ownership and Homeowners with Low Financial Stability Scores.You can work with a list broker to optimize your list for your area.

Every month he sends the payment after collecting their shares of the bill.

That's great advice because you need to be cognizant of Fair Debt Collection laws.