8+ is pretty small and not as common in that area.

1.5-2% is possible in my area. 2% used to be more common until the market got tougher.

The partners/members would receive a K-1 for their share of partnership/LLC income.The only way I can see it being reported directly on the schedule E instead of a 1065 is if the property was owned as tenants in common.

Pro-rated is pretty common. 

Of course you'll then have insurance, taxes, water, etc.So in essence, in your scenario you'd have $16,400 of your own cash left in the property.

Here are four of the most common mistakes and how to avoid them.Making AssumptionsWe all know the saying about what happens when we assume.

Because in that scenario you actually bought an 80k property at a discount. 

Answering your question: I am considering both options yet analyzing which scenario would be better for me financially. 

To answer your question on getting "basic insurance for property management" - See my perfect world scenario below Other than doing things the "right" way you could try hiring day laborers through a temp agency who would maintain the Work Comp and Payroll Taxes.

There is no value for you to add in this scenario.