Another option is to get a second mortgage taking the first down below 20%, the payment on that loan could be less than the PMI, you'd probably need private money, if you have other assets another bank might work with you. :)

(first floor is the garage and second floor is a 3/1 apartment.

(I've put a lot of time and shoe leather) My first purchase was 100% financed through some personal loans from friends; second and third purchases were from my HELOC.

@Cedrick GervinThe first thing that I would do would be to buy the personal residence and finance it to the hilt, like maybe 5% down and 95% financed fixed for 30 years.The second thing that I would do is to try and line up financing for the 12 unit purchase.

Title insurance usually only does two searches, one through the recorder and the second under the owner's name.

People in the second group have a much higher success rate.I think spending days or weeks studying what entity to use is something like that,,,what will make you money is to get out and learn real estate, and start putting in offers on your first investment,,you need to be held back some, so you don't make a mistake, but you need to be ready to go start working on deals...you make money investing in real estate by putting together good deals,,,,,,you have to go 'get your feet wet",,,and thats how to succeed (again, with someone keeping you from making too big a mistake)Don't get paralized you will make a mistake,,we all make mistakes

I'd like a little advice on how to structure the second (long term) partnership and what everyone thinks of the plan, in general.

I second @Braden Smith You will find NOREIA to be most beneficial.

Originally posted by @Steven Stokes: So I'm going to need to rant for a second.

It's so easy to second guess yourself and having a pro tell me it's a good deal is very uplifting!