In many cases an out of state LLC, also referred to as a 'foreign entity' simply needs to register in that state to do business.

They won't let you live in one of the houses since they are business purpose commercial loans.

Do not mix your personal expenses with business on the same credit card, checking account...

The equity and profit would all be split based on money put into the deal, so I would have 20% equity and would be entitled to 20% off the net profit.Here is my issue: both of them are pretty set on holding the property free and clear (10+ years) because their primary goal is solid cash flow and secondary income to their businesses which can be seasonal.

Starting out should my business partner and I form a LLC together before buying our first house to flip.

They might offer business lines of credit or renovation loans. 

DSCR is a business-only product, so you cannot owner occupy. 

Here recently they have been working on Bragg Blvd a few miles down from the New Amazon facility; and not just roads either, there are a few businesses that are building new buildings on Bragg Blvd as well.

With the distance and only have the 1 property I do expect a certain cost of doing business.

After a few months decide which person/group would fit not only how you do business, but also your personality!