PaulYour attorney forgot to tell you about: 4) you lose and still owe him $ Tom one really needs to be careful of the thought that my attorney can beat up their attorney.. in civil litigation you have to look at damages.. and reality of winning.. not sure what this guys attorney hourly rate is but he could find him self with a 2 to 5k attorney bill and lose which according to most responses and at least in my expeirnce he probably will based on the facts he laid out..

the agreement must spell everything out... all responsibilities, who does what, what you're both contributing to the venture etc. make sure its in compliance with current state laws. get it notarized. get a separate bank account & EIN from the one you may already have. good solid friendship or not, business is a different world. kudos,Mary 

Before anyone posts, I have a general understanding of the average questions that are asked such as what the rate will be, length of loan, and Points tacked on top of debt, the responses that I am looking for are complex HML questions that only seasoned investors know to ask, thanks in advanced BP Brothers and Sisters! 

OK sorry for the long response I’m just passionate about this.  

I would make sure that the lease and any guaranty accurately reflects the deal you agree to.

I posted about this experience recently: https://www.biggerpockets.com/blogs/8160/71180-we-...With a master metered property, you have a few options: (1) you become responsible for the water bill and include a flat fee in the rent (2) sub-meter the property so each unit is on their own meter, making the tenant responsible (typically VERY expensive) or (3) implement Ratio Utility Billing System (RUBS), this is where you are still responsible fo the water bill but through a formula and spreadsheet bill back the tenants their fair share.

Yes, your relative cash flow may decrease some by virtue of being responsible for a bigger loan amount, but you can use leverage to own more property for the same price.

Thank you Roy for your response and insight. 

@Andrew Postell Hi thank you for the response.

She is asking her GA broker about it as well but thought I would reach out here in case the responses are more timely.