Here's why:(1) They have more income, and therefore have more room in their household budget to absorb an unexpected expense.(2)  They are are jointly/severally liable (under my lease, at least), thus they are all individually "on the hook" for the rent. 

@Rick Pozos I’m sorry that u think my post is a scam.

I usually use 75% of the ARV so in your analyzed that amount would be $60,000Another thing to note, your repairs, CAPex reserves will be determined by the work that will be done for eg: if you are getting a new roof, new HVAC,etc, u can budget around 4-5%, check wit your property manager to determine the vacancy rate as still will be determined by the area as well.

I agree that separate LLC's are the way to go.I wouldn't have any ownership in my sister's property but I was considering a joint "Branding" that could benefit us both. 

I will add him to the lease and ensure the new lease states all are jointly and severely responsible for rents due.

It's a jointly owned multifamily rental in Westchester County, NY.

My point is, u always have to verify others work if u want it done right.

Ideally the investors would invest in a “debt fund“ for an agreed upon interest return, like 10-12%, providing me flexibility to function as the general partner who can acquire multiple properties without the liability of joint ownership issues like if I had equity investors.

Ideally the investors would invest in the “debt fund“ for an agreed upon interest return, like 10-12%, providing me flexibility to function as the general partner who can acquire multiple properties without the liability of joint ownership issues like if I had equity investors.

Jason,  do u insure AZ property?