I don't know what kind of deal she will come back with ($ wise), but does anyone have any advice on profit sharing, how to structure the deal, whether both of us should have an LLC set up, how money is spent, etc? 

It would generate $2,100 per month.

It is likely a distribution.Self-directed IRA's are allowed to make make business loans to generate interest income.

I'm currently focused on 2-4 unit, buy & hold rentals in the Dayton, OH area, with the ultimate goal of building an income generating portfolio that allows me to say goodbye to my career in financial planning & analysis.BP is an incredible resource, and I look forward to connecting with other like-minded individuals! 

Rental real estate often generates losses for tax purposes even when there is positive cash flow.

I plan to do this by reinvesting my profits into more properties and living off of our W2 paychecks.

At most you have $40k profit -long term capital gains at approx 20% tax is $8k - most likely worst case tax. 

Then go from there and use the flipping calculator to figure out how much you can offer and still make a profit.

., plus a satisfactory profit, then go for it

It you book all your notes into one QB file, you have to generate reports that pull out a specific note.