Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney.

I am an attorney, and I also have an ESA.

Get your attorney to draw up the operating agreement and tell your attorney not to "lawyer it up" with language no one understands. 

At the end of the day I realize I should go to an attorney for advice and help setting this up, but was hoping to get some initial feedback to have an educated conversation.My initial thought was to create an LLC for each individual property, and then one for each of of the siblings.  

I've asked an attorney who says that the bank would be paid their $15,000 and my partner would NOT be paid his $10,000.

It essentially involves discoloration of the walls and vaulted ceiling that highlights the framing of the house beneath the sheet rock.Well, I have the walls and ceiling scheduled to be repainted but now my tenants are claiming the issue is mold related and threatening to contact an attorney.

I'm looking to buy a specific property using "subject to". if we get to a contract, we'll close it, get a warranty deed, a power of attorney from the seller to me for the property, and by snail mail will notify the seller's lender. so far so good?

You can go with the practical advice or @John Underwood or contact an attorney for the true legal answer.

Check with your title attorney too to see what they will accept in Arizona. 

The state has also passed a bunch of rules and costs have gone up because the limited license to practice law has been more clearly defined and you have to have an attorney draft every document for your business that is not a standard form.