. - Property is in good shape and only needs $10-15k of improvements.Below I've listed the financials of our joint partnership:- Access to roughly $40k in Cash- 700 & 780 credit scores- Joint Income of $300k+, $400k+ including spousal incomes - Both of us have sub 20% debt-to-income- One partner highly skilled in managing people, and plan to have him be the “people” side of the business (screening tenants, working with contractors, etc) Other is experienced accountant that will manage flow of money, refinancing down the road, financial reporting, tax, etc.Main questions:How should we joint purchase the property?

These limits apply to both those filing single or married filing joint just with different limits. 

One of the single family is my primary already deeded in a revocable trust and the other I own with my sister free and clear (joint owners).

So, some minor separation of joints is normal.

We're both Hawaii residents and file jointly (a common law state). 

It was a joint venture with a local contractor/investor. 

This could be through a joint venture or forming a small investment group.

Some common problems are oil canning (sheets buckling) due to improper expansion joints.

If they have a profit selling the house the first $250k of profit is excluded from federal tax for a single person or $500k for a married couple filing jointly because it was their primary residence.

If the net number is over the $500k that it sounds like they will be exempt from if they qualify for a section 121 exemption (will need to have lived in the property as their primary at least 2 of the last five years, can exclude up to $250,000 filing as an individual, $500k married couple filing jointly, and meet all the other use requirements), then the only option I can think of to avoid those capital gains taxes is to keep the property as a rental for a few years then sell it and 1031 into another property.