This is a FREE service provided by the bank, and we have used this account for about 15 years or so. 

You technically CAN break it up on Schedule E; however, it is not the best thing to do for audit purposes or an actual breakdown.You should have an operating/partnership agreement together and you should have a dedicated bank account for the property.  

These penalties include:Five years in prisonUp to $500,000 in finesEquity Skimming may also result in Conspiracy charges, specifically conspiracy to commit bank fraud and false statements to influence a financial institution.

We also have a bank account at a smaller Chicago community bank, but there technology isn't as good to be honest.I think @Jonathan Greene's main point is don't step over dollars to pick up pennies. 

Quote from @Quinn Olivarez: If I were the original seller, I would tell the bank I sold the house so that I could get the ball rolling on getting it out of this sub to agreement that is probably not enforceable in most jurisdictions.

PreREO made 2 unauthorized attempts to access my bank account to withdraw funds that were over and above the monthly interest payments.

In response to your original question, closing agents should handle private loans just like a bank loan. 

Banks use the Net not the gross so it’s not what you make its what you show to the IRS.

Many banks wont touch deals that are sub 90% occupancy, so you could negotiate short term seller financing to help give you runway to make the building bankable for a refinance while you reposition it.

Lets say I die with $200,000 in the bank and right before I die I remember the time I had to go to court to evict one of my tenants..... that would be so sad...