Here's my thinking:1) Creating an LLC for property management (PM) would establish a solid business history for the LLC and make the LLC to be a better candidate for obtaining credit and financing within a few years if I wanted to later purchase or hold title to property under the LLC.2) The LLC would have an EIN which would enable the LLC to open/maintain its own checking account which would receive/maintain rental income/deposit separate from my personal accounts.

In my experience, if you hold the open house, and a buyer wants the house you're holding open, you get a referral fee for bringing the buyer to listing agent (very rare) or if the buyer does not like the house but you are able to connect and establish agency, then you can have them when they purchase another home (even more rare in my experience)...with the possibility of a referral fee tacked onto that.

They need to learn how to get along as neighbors, or choose a different type of housing.I would make a site visit to see for myself what is going on, meet with both parties, discuss the terms of the rental agreement, re-establish our expectations, and do an inspection of both units.

Has the mother established residency... changed her address to that location, moved her belongings into the unit, received mail there, etc. ?

I actually moved here last year for 9 months to learn the market and establish a team and buy a bunch of deals!

That establishes them as a contractor.

@Jay Hinrichs,The concept is based on "micro-lending", or collecting enough lenders / credit cards to accept enough small portions of the risk to add up to your desired goal.Of course, multi-million dollar goals are going to be limited to established S/C-Corps and/or LLCs with strong credit histories.

You are not relying on the representations of someone a couple thousand miles away.I agree with you about keeping the PM as the main contact...you do not necessarily want interaction with the tenants beyond what you have established.

With regard to your questions:PropertyI am at the beginning of my search, but I believe I am looking for:Multifamily investment10 to 40 unitsOpportunity to improve cash flow through better management, cosmetic improvementsDecent cap rate (still determining what that means number wise)Close to public transportIn New JerseyAgentI am seeking an agent who can be a true advisor in terms of things like towns to focus on and finding the right properties.Thanks!

I could see how this could look like a red flag to an auditorI am not sure if my Tax advisor is just too conservative, but he keeps recommending that we don't write off that much.