You must keep the ownership percentage the same at all times and all income/expenses must be split according to your ownership percentage.Be sure to seek help of a professional who can guide you and structure this correctly so you can avoid violating prohibited transactions rules:https://www.irs.gov/retirement-plans/plan-particip...

If I remember correctly, the BP member also had a Property Manager (PM) in place.

okay so overall question, I am assuming you cannot get a commercial loan for quad or under; so an LLC buying a quad would show up on the personal credit but a commercial loan (5plex or higher) would not show up but is still needed for the loan.am I on the correct train of thought here?

I reread your paragraph after typing this and I just want to make sure I have this correct, your current railings are wrought iron and just not high enough to meet code?

I did some research about rents in the area and I think I should be able to raise the rents to $1000 each ( if this is not correct please let me know.

That being said, they do serve their purpose especially with higher $$$ amounts or # of properties > 20, but much of the time I find that for different reasons, @Andrew Kerr is correct, it is worth the "headache" of doing 10 individual loans.  

Armed with this make your way to the owner and present a well-written offer without any contingencies.Packaged correctly the owner of the property may want to proceed with you.  

Excluding tax liens, of course, but the bank would keep those paid up, so that shouldn't be an issue, correct? 

With that given number... did I go about this correctly?

@Kayla WagenmannAs long as you don't misrepresent your knowledge level (always recommend an accountant for taxes, attorney for legal, etc) and are sure you're providing accurate information to clients (correct school district, etc), I don't see any increased liability overall.