We filed a separate partnership return for the LLC.

The deed transfer does trigger a taxable event, which you will pay for in "tax stamps", if you have a mortgage on the property.   

For the most part, "partnerships" in small time real estate deals are dumb.

@Emma RossThe great thing about partnership's is that you both can agree to any manner that you want to split profits/losses.Property managers normally get 10%.

So you have to find some way to trust them and be able to sleep at night, or there is no way or reason to pull the trigger.

I have been meeting with a local investor who is also a real estate agent, and he's mentioned partnerships. 

I am successfully involved in such a partnership now.

We are trying to figure out terms to put in a partnership agreement between us. 

I believe he has a lot of different partnership's though, so the info that @Ned Carey mentioned about not commingling monies from different companies probably makes sense in that context.I like the idea of a checking account, a savings account for security deposits, and a savings account for repairs, capex, vacancies etc. 

If you have the above mentioned conditions, better call in a contractor for some estimates before you pull the trigger.