If this is the case, @Wayne Brooks is exactly right, you need to find unlisted properties by motivated sellers.

I, along with 2 other people, are planning on setting up an LLC for the purposes of buying, renovating and selling properties.

@Jeff S. you need to find out exactly what the charges were he was convicted of, if it was a drunk driving accident with serious bodily injury and has gone through rehab it's one thing, if it was violence or theft you have to be careful of where you let him work.

Eric, everyone is spot on regarding you dialing in exactly what the arrangement would be, but that is quite a bit of money to learn an immensely valuable skill!

I steer clear of other countries (outside of the US and Canada) for this exact reason (ie. my lack of understanding elsewhere).Good Luck,Jeremy

Others have already pointed out that this is not a good deal.I wanted to point out for educational purposes that this deal actually becomes much worse due to the leverage.  

Do yourself a favor and get good tenants, spend a little time and money up front and know exactly who will be renting from you.

Perfect Account Closed - that's exactly it!

Like I am managing my mangers, therefore defeating the purpose because I am still spending time on them.

Personally, I'd rather re-finance it and get the cash tax free (see a CPA for exact details).