Essentially he just wants to be passive.So is the proper route to create an LLC between him and I as partners then have a lawyer draw up a contract outlining the percentage of ownership I get by doing all of the work?

Many different operators offer essentially  similar terms.

If you are going to be doing agreements with seller financing an attorney becomes essential. 

Tell the bank it is essentially worthless and renegotiate with them to acquire an assignment of their interest to you for a very small amount. 

Essentially they know how to get in and get out. 

@Vladimir Fefer all the wholesalers I know are still working through this, but essentially, yes.

I realized after posting this that I forgot to specify that the $1985 rent includes my share, so I'd be getting ~$1500 from my roommates, and then essentially breaking even when/if I move out and continue to rent it for ~$2k.  

So essentially you would pay yourself half of the management fees and your partner would pay you the other half (could come right out of rent).

Essentially if the zoning of you lot/land doesn't allow a Hotel to be built then you can not receive a permit.

And if you're planning to property manage yourself, then you're essentially working for free.Finally, you don't account for capital expenses.